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. There 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
Driving Has Its Benefits
Access To Vehicles
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