Uber And The Shared Economy Case Study

Uber and the Shared Economy Travis Kalanick, the cofounder and CEO of Uber, found a great alternative for the larger metropolitan areas. Uber’s concept provides a driver on demand for individuals who may not want to drive their own vehicles or utilize public transportation, such as buses or taxicabs. When in an individual wishes to summons a ride, they simply open up the Uber app and request a car. Within five minutes their car arrives and is ready to drive them to their destination. No money is exchanged with the driver, as all fees are paid through the app. The founders of Uber saw a customer need and capitalized on it. They have been able to successfully expand their company into a global market. As Uber continues to expand their customer base, they are not doing so a franchise company, rather as an online transportation company. Uber drivers use their own vehicles, which helps keeps overhead cost down for the company. I think that businesses like Uber and the idea of using online technology to make efficient use of existing resources are very beneficial, especially in the larger …show more content…
While there are many benefits that come with a service like Uber, there are also disadvantages. Across the country, “taxis are highly regulated and restricted” (Cusumano, 2015 p. 32-34), whereas Uber drivers do not currently fall under those same regulations and restrictions, which has several lawsuits. Operating in a shared economy also poses classification challenges for its workers. These workers are not considered to be traditional employees, however, they are not considered to be independent contractors either. “Law makers are still trying to get a firm grasp on what the sharing economy is, let alone the unique issues impacting workers and business in the new employment arrangements.” (Opfer, 2016, p.