What are the cons of driving Uber

Talkin go money

The passenger transportation industry has undergone drastic changes in recent years with the introduction of application-based taxi and cabin service systems. (For more information on useful smartphone apps, see: Money-Saving Apps for Smartphones.) New entrants like UBER have made structural changes to an old industry that functioned much the same as it did decades ago. The taxi must either wave at a taxi on the street corner or call a local car service to reserve a car at least half an hour before the pickup time. UBER and its competitors have made it possible to secure a car or taxi from a smartphone from anywhere. The following are most of the pros and cons of these email services like UBER are addressed.

PROs

Customers: Instead of chasing a taxi in a metropolis or hopelessly praying for someone who miraculously passes their suburban location or calls and waits for half an hour with a car service, e-hail app users can now get a car from anyone they want Hire a location (e.g. your apartment) and have a car ready within a few minutes. In big cities like New York, where the taxi industry is regulated, most of the cars are clean and well-maintained, late-fashion cars that are chauffeured by professional drivers and that have proper commercial insurance coverage. Since the passenger's credit card is linked to the e-hail account, no cash changes, which means that payments do not have to be processed immediately. Upon arrival at the destination, the driver stops the journey and the passenger can simply get out of the car. An email receipt is sent for passengers with expense reports and life becomes a lot easier because there is no need to collect and track paper receipts. As soon as the drivers accept the order to transport passengers, the passengers can track the position and route of the drivers and, if necessary, communicate with their drivers. A driver knows the destination of the passenger only when the billing of the fare starts, and thus this takes care of the problem of being denied access to a taxi when going to undesirable parts of the city. Unprofessional drivers are weeded out because passengers can rate the driver's performance, and a consistently low rating forces a driver out of UBER or its competitors. In many cities and states such as Los Angeles with less stringent regulations (compared to New York), average citizens can offer the UBER service; This increases the number of drivers and makes more cars available. All of this and more drive a positive experience for UBER customers.

Driver: Safety is the number one benefit for drivers using UBER or other e-hail services, and because the transaction is cashless, a driver doesn't have to worry about unpaid tariffs and doesn't have to carry a significant amount of cash with them Could tempt robbers. Unlike yellow cab drivers who work 12-hour shifts or black drivers who are scheduled to ship, UBER and other e-hail drivers enjoy more freedom and flexibility. Drivers can log in and out of the system at any time and can strategically allocate their working hours and effort so that they best suit their goals and circumstances. Motorists can avoid the expensive taxi leases by purchasing their own vehicles; that means more profit for the drivers, everything else is the same. The driver is also spared the burden of favoritism and office politics because the application makes dispatchers irrelevant. Rude, aggressive, and disruptive passengers are also eliminated from the e-hail network, as drivers can rate their drivers the same way drivers can rate their drivers, and consistently low ratings or reports of unsafe behavior towards drivers can lead to deactivation. an account of UBER and its competitors.

Branch: UBER and its competitors occupy a very valuable place in the passenger transport market - that is, between the traditional yellow cab taxi and the black car or limousine service. UBER provides most of the benefits that these two services have while reducing most of the difficulties that need to be addressed when using either service. UBER and other e-hail application services have created more competition, increased the number of cars and drivers in the market, and provided automobile coverage to the outskirts of major cities and suburbs.

CONs

Customers: There are hardly any disadvantages for customers who have better access to safer, more stylish, more comfortable and more comfortable cars - all via an app on their smartphone. are some that may come to mind. "Surge pricing" for UBER or "primetime pricing" for its main competitor, Lyft, is controversial and a major nuisance for most customers. "Inflation Pricing" is a method of pricing in the open market, in which prices are raised or lowered, or in the case of UBER taxis, depending on supply and demand, especially for UBER customers. how many cars are available (supply) and how many passengers want to drive in them (demand). Sometimes the prices for UBER services are increased by a certain percentage depending on the intensity of the demand, at other times they can even be doubled or tripled, and these price increases occur during times of high demand for cars (e.g. rush hour, appointments from Concert events and in rain and snowstorms). (For insight into some key pricing strategies, see: 4 Pricing Strategies That Will Increase Your Spend.) Another disadvantage is that with such cheap prices and readily available cars, customers get in the habit of taking a car for very short distances rather than walking , and costs can add up quickly. While UBER is generally cheaper and more convenient than a local car service or limousine, route cancellations by drivers can cause disruptions in passengers' plans (e.g. missed flights). Safety concerns have also surfaced in many cities and states where the regulations of the transportation industry are lax and average citizens can easily join the e-hail network as service providers. While this has a positive effect on driver supply, these drivers may not be as motivated to achieve high standards of professionalism and safety due to easy access to the e-hail network.

Driver: Low prices have a negative impact on drivers' income. While the applications are hailed by customers as being easy to use, it's important to remember that drivers are the ones who provide the service on behalf of UBER and similar companies. In large cities like New York, UBER is encouraging drivers to purchase late-model model cars that can cost as much as $ 60 to 70 thousand (for SUVs and luxury cars), and some drivers are still renting cars from third parties on a weekly basis. You bear most of the costs associated with the service (e.g. fuel and repairs). The drivers therefore make a huge contribution to the UBER brand. Originally, drivers relied on the rate of price increase to compensate for low tariffs (compared to sedans or cars) and infrequent trips (compared to taxis). However, with the continued intake of new drivers by UBER and its competitors and their price competition, average driver incomes are being pushed down. That means drivers have to work longer hours to earn an income comparable to what they would have made a year or two ago. While this means there is a greater supply of drivers, longer hours behind the wheel endanger the safety of drivers and passengers. These terms, when combined with customer trip cancellations that could result in a driver not missing opportunities to make money during rush hour, can negatively impact driver revenue and morale.

Branch: Price competition is destructive to any industry, even a market that already offers invaluable service and many advantages to the market. UBER, Lyft and other e-hail services offer their customers the expectation of world class limo service for less than taxi fares at the expense of the driver. Increasingly, UBER, Lyft (their main competitor) and other e-hail services are fighting hard to offer the cheapest service. Unfortunately, this battle is being fought on the backs of drivers who bear most of the cost. Ultimately, this can only add to the stress of the drivers (just like at the Yellow Cab taxi company) and if not corrected it will result in poor service in the long run. UBER and other e-hail services compete directly with the existing taxi and limousine or car services for customers and drivers. This has caused the taxi medallion and black car prices in New York to fall, which is good for drivers but bad for the traditional taxi and car service groups.

The final result

The introduction of e-hail apps like UBER has enabled users to organize car journeys from anywhere with their smartphone, giving them access to a whole new group of service providers - newcomers to the industry (drivers), stylish cars and have a degree of autonomy. This new type of passenger transportation offers all of the benefits of traditional taxi services, plus added convenience, while removing many of the challenges involved in using yellow cab and black vehicles. The use of these services has also introduced new rules that govern how things are done - in terms of pricing and choices for drivers and passengers. (For example, drivers can rate their customers, and it is not possible for drivers to refuse their services to passengers going to an undesirable location.) However, a disadvantage is that the flooding of the market with new service providers creates a level of competition that increases market share traditional taxi services and has reduced the overall profits of drivers who bear the brunt of the costs associated with this type of transportation.

Disclosure: The author of this article is affiliated with UBER, Lyft, and HailO.