How does Uber ridesharing work?

Urban Transport

What Is Uber

Uber Climb

Urban Transport

A technological innovation applied to ridesharing vs urban transport has caused an earthquake in the economic, political and social paradigms of the world.


Whoever believes it is just an application is wrong. Who also thinks that it will be the last company with these effects, becomes wrong again?

Over Time

The need has always been there: a move from point A to point B. Over time, the need has changed in form, but not in the background.

They used to be carriages pulled by horses; today they are vehicles. Due to its economic, commercial and productive nature, the movement between individuals began to regulate for centuries.

As Uber has escalated and touched local actors, the controversy has been unleashed through demonstrations of support or rejection. Therefore, it is worth asking: what is Uber? What paradigms does it break and why? How did Uber climb? What happens there where it goes? What implications does the evolution of Uber have? And, where is it going?

What Is Uber?

Uber was presented in 2009 as part of an incubator in the city of San Francisco. Its value offer was to use an application that would become an alternative to move around the big towns quickly, scheduled and cheaper than a taxi. After raising capital, Uber began with a strategy of priorities similar to that followed by the Tesla car brand. First, it focused on the segment of the population with the highest purchasing power and after dominating the said market, offered alternatives for other, more economic sectors.

Many governments, unions, and taxi companies have protested against Uber, arguing that he uses unlicensed and unsafe drivers without a driver's license. The company says that it is not about removing the traditional taxi business, but about expanding the market through the shared economy. Travis Kalanick, founder, and CEO goes further. In the entrepreneurial world, Uber is considered a Unicorn, one of the rare companies that for the millions of users that attract and the billions of dollars of sales that they have, are quoted in valuations of more than 1 billion dollars.

The numbers of Uber impress anyone since it operates today in almost 300 cities in 59 countries of the world. Its value in the market is double that of Twitter. It is in talks to obtain 2 billion dollars of liquid money, so its valuation would grow 25% and make it the most valuable enterprise in the world.

sharing a ride

In the words of Bill Maris, head of Google Ventures, Uber is already the fastest growing enterprise I've ever seen. Also, it is already profitable, especially in more mature markets. They are in busy cities like New York, Washington DC, San Francisco, Chicago and Los Angeles, where they generated between 1.5 and 2 billion dollars last year. (Shontell, 2014)

But within all the money that the company receives, there is something that had not been seen before: Uber not only obtains resources from its investors and their customers but also drivers 'invest' in the company by making their private vehicle available who wants to pay to transport them, which prevents the 'burning' of cash for investment in assets.

carpooling vs ridesharing

This confirms that the shared or collaborative economy is a business that generates intermediaries that become rich and powerful because of the invaluable information they collect, keep private and use in their favor.

And above all, Uber is one of the exponential organizations that break with our conceptions of a whole industry. "Instead of using armies of huge employees or physical plants, it is a smaller organization focused on information technologies, which dematerializes the business of intensive physical goods characteristic of the 20th century, through the creation of new products and channels of revenues in just months. "(Diamandis & Kotler, 2015) That is to say, the largest and most valuable transport company in the world, does not own a single vehicle. Get detailed information on how you can become a rideshare driver at

How Much Do Uber and Lyft Drivers Really Make?

The fundamental paradigm challenged by Uber is that of the rental vehicle with a driver, used by passengers who want to move between two points of their choice. This was understood as a taxi for many decades. But Uber also does this, in general. The situation becomes more dramatic due to the market penetration of vehicles and government intervention. On the one hand, 50 years ago automobiles were a luxury good available to very few, so the taxi was a work tool. On the other, government intervention has drowned the business. uber rider appThere are high costs of enumeration – license, permit, paint, plaque – which, combined with the high costs of inefficiency -traffic, search for passage- and operation and maintenance, have markedly reduced the profit margins. Also, taxi drivers are a vulnerable group, as there are no overtime payments or salary replacement due to illness. Being a taxi driver is not a very good business today.

The situation is not very different for an Uber driver. In countries with a low inequality index, drivers use their vehicles as a work tool and thus take around 75% of the fare. In countries with higher inequality such as Mexico, there is a singular phenomenon: there are owners with full lots of cars that hire drivers as private drivers and assign Uber units. But there is a common factor in both types of countries: Drivers see Uber as a company to maintain a constant income before other potential income more unstable or unpredictable.

The 6 Main Benefits Of Uber On Taxis

Uber works as a community of self-sufficiency, a concept of collective autonomy, which offers transportation as a private door-to-door service. On the first day of operations in Costa Rica, some 4,500 people downloaded the Uber application.

Why is the Uber service different? These are the main differences of the Uber service concerning public transport offered by taxis.

  1. Budget The Trip: find out how much your trip will cost before doing it through the option “Estimating the cost.” The application will calculate the approximate amount based on the estimated time and distance.
  2. Divide The Fare: through the App, it is possible to divide the fare of your trip with other Uber passengers. Once the trip begins, choose the “Split Rate” option from the menu and add the other passengers: each of them will pay 140 colonies for the transaction.rideshare insurance
  3. Bill And Objects Lost: at the end of each trip, you will receive a receipt to your email detailing payment, busy route and travel time and options like searching for a lost object.
  4. Goodbye To The Directions. The application detects your location using your phone’s GPS and connects it with the nearest driver. Even if you do not know the exact address, you can pick it up anywhere.
  5. Share Location: your friends and family can follow your route and know when you are about to arrive using the “Share ETA” option that will generate a text message with a link to your trip.
  6. Without Cash: the service is canceled using the data of the credit card that the user entered in the application on his phone. There is no exchange of money.

The application also allows qualifying and making comments after the trip on the driver. The minimum Uber rate is 1000 colonies, which equals a basic standard of 500 + 50 colonies per minute + 300 territories per kilometer.

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Rideshare Driving Jobs

Been thinking of getting a rideshare job with Uber, Lyft, or any other rideshare company.


People sometimes get the wrong information when it comes to going this route for making some extra cash. On this site, we will cover the dos and don’ts of seeking to drive for one of these new and upcoming companies. Stay tuned to find out how you take steps to ensure you make out like a bandit when choosing to do ridesharing.