Uber, an app connecting users with rides, has become increasingly popular among college students.
Customers are given a quote for the trip which can vary slightly depending on traffic, and at the end of the ride the payment is sent directly from their account (bank account information is entered upon downloading the app).
The price is quite reasonable; a ride from my dorm to the Garners Ferry Target could range from $11 to $15, which is slightly cheaper than a taxi ride. The company’s policy of not asking for tips brings the price down even lower in comparison. Unlike in the traditional cab system, you pay through the app. The company takes a cut of 20 to 30 percent of the fare, and the rest goes to the driver. The convenience, transparency and low cost of this budding transportation service has driven a boom in the number of users and drivers, which has cut into the profits of traditional taxi drivers, who vigorously oppose the company.
Meanwhile, some city officials and law enforcement have also inserted themselves into the dialogue. Several cities in the United States have suspended the company’s operations, citing its disregard for the regulations intended to keep passengers safe.
But Uber has a very unique business model which uses direct feedback to maintain optimal conditions. Drivers have ratings posted on the app based on consumer feedback and can be "deactivated for consistently poor ratings.” On the other hand, users can be temporarily or permanently "barred from using the app for inappropriate or unsafe behavior,” so there is incentive for both parties to provide a good experience.
Uber is "committed to safely connecting riders and drivers” and rigorously screens potential drivers, who undergo "a process that includes county, federal, and multi-state criminal background checks.” The company believes that these checks and balances are equivalent to ensuring users a safe environment to the regulations applied to regular taxis.
Though it is proving a more useful and efficient mode of transportation to traditional taxicabs, Uber is vulnerable to government intervention. Its business plan cannot thrive in a heavily regulated market, as evidenced by its recent withdrawal from two cities in Alabama, Auburn and Tuscaloosa, that tried to impose taxi ordinances on its drivers. Still to be decided — by the public at large and city officials — is whether this upstart company deserves a break from conforming to all existing transportation laws. But around the world, the innovative model is proving irrepressible in cities like Cape Town, South Africa; Queensland, Australia and Mumbai, India, in which the service is banned yet continues to operate illegally.
Like it or not, the future of transportation is changing rapidly. Our governments must decide soon whether to evolve along with it, and profit from the legitimate revenues of companies like Uber, or to strictly enforce existing regulations, forcing these services underground and decreasing their safety and service quality — the very conditions the regulations are intended to bring about.