Taxi Industry Research Paper

Is Uber good or bad for the taxi industry?

Introduction

The history of the taxi industry has been existed around 120 years. Taxis have increased sharply all over the world in various forms and became a worldwide phenomenon (Charity Cab, 2017). However, in few years, the personal transportation industry has been transformed dramatically especially the online rideshare changed it a lot. A ride sharing company which is named UberCab, launched their Uber service in 2010. Nowadays, passengers can be picked up at anywhere just to download an app and a few clicks. Uber currently operates in around 580 cities and is valued at over 68 billion (Research, 2017). As mention above, Uber is booming rapidly. It makes the taxi industry a question, is Uber

In some major cities, some drivers are still rent cars form the third parties or encouraged to purchase late model cars which are cost up to 60 to 70 thousand USD for luxury cars (Jalloh, 2017). Besides, they need to bear most of the costs related to the service such as repairs and fuel. With the new Uber drivers, competitors and price competition increase, drivers’ average earnings and morale are pushed down. Therefore, it is not impressive to driver retention rate. One year after they active, only 50% of drivers are still exist (Research, 2017).

Disputes And Complaints

Although the taxi has competitive with ridesharing industry for many years, but the exist of Uber was suddenly made the level of competition higher (Cleverism, 2017). Due to the taxi industry lost both of the customers and drivers, several taxi companies had close.

The chart shows how the increasing of Uber caused the price of taxi to collapse by at least 37%. From a peak of more than 1 million USD in 2013 to only 650,000 in recent months (Rarr, 2017).

Obviously, Taxi industry is disrupted by Uber. More and more complaints and disputes are coming from taxi industry, even reached to several legal actions have taken against Uber in many cities around the

It has changed dramatically to an old industry that already functioned the same way decades ago. Though it is more save, flexible and save both drivers and passengers’ time but it still has some disadvantages which are lack of protection for the drivers and is using to disrupt the taxi industry. Weighing the advantages and disadvantage, I consider that if Uber can find some ways to well protect the drivers and balance its books and to make sure that it is feasible over for the long-term (Research, 2017). Also, if the governments can legislate for other taxi companies which is depend on different countries needs. Uber is good for the taxi