Please enable JavaScript.

Coggle requires JavaScript to display documents.

TMA3 - Q1 (INTRODUCTION (Define (Uber's business model (Based on "…

- - - - Based on "sharing economy" where service is shared between private individuals free or for a fee, typically by means of the internet
- - - - "pushes the limits of the transportation industry to create a simple, more efficient, and more enjoyable car service experience.
      - Rapid growth & international expansion
    - - According to Uber, "Uber is a revenue stream, allowing professional drivers to make more money by turning downtime into profits (Uber, 2016).
      - Supplement main source of income (1 in 5 drivers)
    - - On demand service
      - Luxurious rides
      - Smartphone application
      - No need to carry cash: electronic payment system
      - User doesn't need to know where they are - GPS co-ordinates
      - User knows exactly when driver will arrive
      - Passengers matched to drivers
      - Food delivery: guaranteed delivery within 30 mins
    - - Step-up & innovate to stay relevant ie, card payments & contactless
  - - - Poor working conditions and excessive (unsafe) hours: up to 21 hours per day; one man worked a 91-hour week.
      - Why work excessive hours? To make ends meet as Uber increased cut of fares & fights ruling to give drivers employment rights.
      - "We work like slaves for this company"
    - - Figures show a dramatic rise in casualties involving taxis & private hire vehicles in London - causal link to excessive hours worked?
      - 26% rise in casualties among taxi and minicab passengers during 2015, with the number of passengers killed or seriously injured rising from 13 to 20, ie, a 54% rise.
    - - Tax avoidance methods: £411,000 in UK tax 2015, despite drivers completing £115m of business within London (Quinn 2016)
      - Retain 20% of any fare to driver (increasing to 25% for new drivers in London)
      - Fighting ruling that gives drivers employment rights: holidays, pensions etc.
      - No plans to limit driver hours
      - Means of "side-stepping regulations, taxes & other legal obligations". "Uber London actively resists attempts by TfL or other government agencies to regulate its services".