A few weeks ago, I came across an exciting news that Uber was about to entry into Vancouver. Uber is the well-recognized international brand that operates successfully all over the world for its reasonable price and user-friendly application interface. However, it has been rejected several times from entry into Vancouver in the past few years.
The main obstacle for its launch is that Uber will dramatically harm the local taxi driver`s interests because of its much cheaper fare. The taxi drivers are also concerned about the unfair competition since Uber doesn`t share the same background check criteria with them as well as safety inspection and insurance. (Smyth,2016)
Based on what I learned from chapter 9, conflict occurs when people have different lines of thought, approaches, and theories in regards to business operation. Owners of businesses may also encounter conflicts when bargaining with other businesses or individuals. Acquisition of economic resources, such as driving licenses in this case, entails a bargaining process.
Businesspersons and organizations can utilize conflict negotiation in the creation of favorable outcomes when dealing with stronger parties (Singh, 2010). Numerous companies are aware that they are not in a position to attain all requests when dealing with conflict and negotiation. Therefore, possessing the best alternative to negotiated agreements assists in ensuring that the company gets a high number of concessions as negotiation progresses. Nevertheless, such options may result in increased conflict in instances where they continually need the other parties to comprise and thus forfeit more benefits (Rahim, 2001).
My advice for taxi drivers is that they cannot only boycott the entry of Uber since the shared economy today is an irresistible trend in today`s world. What they should do is to figure out the best alternative, such as negotiating with the government to ensure the fair and level playing field, to get the highest number of concessions from Uber. At the same time, they should improve the quality of their service to adjust to the more fierce competition.
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References
Smyth, M. (2016, October 16). Mike Smyth: Threat of Uber looms large for Vancouver taxi drivers. Retrieved April 02, 2017, from http://theprovince.com/opinion/columnists/mike-smyth-threat-of-uber-looms-large-for-vancouver-taxi-drivers#comments
Rahim, M. (2001). Managing conflict in organizations (1st ed.). Westport, Conn.: Quorum Books.
Singh, B. (2010). Managing conflict and negotiation (1st ed.). New Delhi: Excel Books.