Uber, a taxi company, which-in five short years since its start-has been causing uproar of massive proportions. Due to my family investments in the local taxi industry, I was intrigued to read Mitch McCllough’s blog on Uber titled, “Controversy of Uber Proportions.” Other than the creative pun, what captivated my attention was how he approached such a controversial topic.
Uber has been charged with various charges ranging from unqualified and unsafe drivers, to illegally flooding the taxi industry by bypassing the barrier to entry set forth by taxi license plates for cars, chauffer license for drivers, and insurance for the driver and his or her passengers. By evading all of these regulations Uber is able to provide a cheaper service, however they do so by risking the financial and physical security of both the driver and the customers in the car.
Some of Mitch’s points, which are noteworthy, and notable in this manner, are when he deploys his knowledge of economics on a micro scale to better understand the business model of Uber. He states that by “influencing both supply and demand through pricing schemes” of the Uber cabs, Uber creates a business for themselves. To further Mitch’s views, I believe Uber uses an aspect of disruptive innovation with their app by providing a cheap and fast service that is viewed as convenient for their customers. As this issue develops I will be sure to write another blog with all the updates.
To read Mitch’s Blog post click here, and to read the full article click here.
-Gurinder Mahal
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