Uber is a Threat to the Traditional Taxi Industry (Essay Sample)

Uber is a Threat to the Traditional Taxi Industry Student’s Name Institutional Affiliation Course Instructor Date Uber is a Threat to the Traditional Taxi Industry The introduction of Uber in major cities across the globe has made transportation cheaper and safer, according to several individuals who have used their services. However, some individuals claim that Uber is destroying the traditional taxi industry. Uber is cheaper, makes it easier for customers to find a ride, and their drivers don’t require individual taxi driver insurance. As a result, I believe Uber is a threat to the taxi industry. Uber drivers do not require a personal taxi driver insurance to operate. In the taxi industry, drivers are required by law to obtain personal taxi driver insurance and register with local authorities. The registration and insurance fees make it expensive for drivers to operate in the traditional taxi industry. However, all a person needs to work as an Uber driver is experience and a driver’s license. The Uber network takes care of insurance and registration of its drivers. Most drivers have opted to join the Uber network and abandoned the traditional taxi industry because of the favourable terms (Rahel, 2016). As a result, Uber is a threat to the conventional taxi industry as it is robbing it of drivers due to the favourable conditions of operating as an Uber driver. Uber has made it easier for customers to find a ride. Accessing a ride has been made easier by Uber. All a person needs is a smartphone, downloading the Uber app and requesting for a ride anywhere anytime. Uber app also determines the cost of the trip after a user selects a destination (Rahel, 2016). On the other hand, a person has to approach a traditional taxi driver and negotiate the prices. It may lead to a taxi driver overcharging a customer. Secondly, it is tough for a person to use a traditional taxi in insecure areas as a person has to either have a number of a taxi operator or physically find a taxi person. On top of that, using a traditional taxi in a foreign country is a great challenge, especially if a person does not speak the local language. Uber has found a way of eliminating these challenges affecting the traditional taxi industry and made it easier for users across the globe to use their services through their user-friendly app (Stenovec, 2016). As a result, it is a threat to the traditional taxi industry as most people are abandoning conventional taxis due to the convenience offered by Uber. Uber is cheaper than traditional taxis. Traditional taxi drivers have to pay for personal insurance and registration fees annually to authorities, which makes it very expensive to operate in the traditional taxi industry. It forces the drivers to charge high prices to enable them to cater for the...