Uber is an American international company headquartered in San Francisco, California. It develops, markets and operates the mobile-app-based transportation network also called Uber. The Uber app allows consumers to submit a trip request, which is routed to crowd-sourced taxi drivers.
Uber was founded as “UberCab” by Travis Kalanick and Garrett Camp in 2009 and the app was released the following June. In 2014, it experimented with carpooling features and made other updates. It continuously raised additional funding, reaching $2.8 billion in total funding by 2015. Many governments and taxi companies have protested Uber, alleging that its use of unlicensed, crowd-sourced drivers was unsafe or illegal.
Uber uses an automated algorithm to increase prices to “surge price” levels, responding rapidly to changes of supply and demand in the market, and to attract more drivers during times of increased rider demand, but also to reduce demand. Customers receive notices when calling a cab with Uber that prices have increased.
Uber has received criticism for this system because of the prices increasing around holiday times, become very expensive to use.
Uber can benefit society as whole as it allows people to quickly get cheap travel when they need it. It can help people to quickly get around as a taxi will be able to turn up quickly. It is benefits society as is surge pricing model means that the price depends on how much demand there is in an area. This means that an area with few taxi trips is cheaper than an area with many. This is good as it means that people may avoid taking this when the price is high due to other taking it. This could reduce pollution.
A negative to society is that this could negatively affect traditional taxi services as they may be driven out of business due to Uber having lower prices. This is bad as it means that people who work for these taxi company with be left unemployed which is bad for society.
Uber can benefit individuals as it allow individual to get around quickly and cheaply. This is good as it means that they do not have to pay much for a trip and that they can get the trip quicker which means that they can be more productive with their time. Surge pricing can benefit individuals as it means that people can get very cheap journeys in areas where there is little demand and is also discourages use when in an area with high demand by having higher prices. This helps to reduce pollution as people do not want to pay for this.
A negative to individuals can be that they would have to pay more for a journey when there is high demand than they would do for a traditional taxi. This means that on holidays that people would have to pay far more than they would normal pay to get a taxi to pick them up. This is bad as it means that individuals would have less money to spend on other things or at other businesses.