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New challenges for Uber


Recently Uber entered the scene and gave a hard time to taxis drivers. Price competition is undeniable. But where Uber was not stopped by regulations, it created great jobs opportunities. The public opinion is divided between who is in favour and who is against Uber. While the European Parliament in a short analysis for the Transports Committee with some researches and literature on economic and social consequences of Uber.

Uber, SideCar, Lyft , so called Transportation Network Companies (TNCs), they are innovative business models of sharing economy, that means people share goods and services by using Internet platforms and  ICT applications.

Obviously Uber contributes to reduce costs and speed up the search for a taxi . Regarding quality and prices the drivers are rated by consumers and may be removed from the system if their rating falls below a certain threshold. Prices of the rides are estimated beforehand and can be easily compared across several applications, introducing greater transparency, something that taxi regulation attempted for years by requiring taxis to publish their price lists inside and outside of the vehicle. In a long term Uber and other similar transports could reduce the number of private cars with economic and health advantages. Nowadays, according to some studies, the trend is still the predominance  of private cars and the consequent traffic congestion, Uber could change this tendency.

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