Like what you've read?

On Line Opinion is the only Australian site where you get all sides of the story. We don't
charge, but we need your support. Here�s how you can help.

  • Advertise

    We have a monthly audience of 70,000 and advertising packages from $200 a month.

  • Volunteer

    We always need commissioning editors and sub-editors.

  • Contribute

    Got something to say? Submit an essay.


 The National Forum   Donate   Your Account   On Line Opinion   Forum   Blogs   Polling   About   
On Line Opinion logo ON LINE OPINION - Australia's e-journal of social and political debate

Subscribe!
Subscribe





On Line Opinion is a not-for-profit publication and relies on the generosity of its sponsors, editors and contributors. If you would like to help, contact us.
___________

Syndicate
RSS/XML


RSS 2.0

Uber lessons in disruption

By Ken Phillips - posted Tuesday, 6 January 2015


Taxi alternative Uber is throwing all the rules about hiring a car with driver out the (taxi) window.

In turning the taxi industry upside down, Uber is causing political storms across North America. The controversy in Australia has only just begun.

It's just one example of our "disruption addiction".

Advertisement

Once, keeping everything the same made people feel comfortable. Now we've become the ­disruption generation, accommo­da­ting disruption in deeply personal ways.

There's hardly an extended family where partner separation is not somewhere in the mix. Same-sex relationships are standard. Relationships that come and go are no longer frowned on.

This acceptance of disruption in our personal lives displays ­itself in more hardnosed attitudes when we operate as consumers. We're unforgiving of businesses that don't respond instantly to our personal wants. "Disrupt your business" or die is our unspoken message.

Uber's response is disrupting the viability of the regulated taxi industry cartels. Uber connects consumers directly with the service provider, the owner-driver.

The drivers are self-employed. Unlike taxi drivers, Uber small-business drivers choose their jobs and the price they charge. Uber drivers aren't forced to accept fares. Consumers pick the driver they want at the price they are prepared to pay, displayed on the Uber mobile app. In contrast, the price for taxi services is decided by a Big Brother regulator.

It's pure free market. Uber doesn't provide transport services. It's a free-market facilitator, like a stockmarket for personal transport services with an array of checks and balances.

Advertisement

We consumers provide ratings on drivers displayed on the Uber app for others to see. "Sleazy", ­unpleasant drivers driving dirty vehicles are identified. People stop choosing them.

Uber drivers have potentially higher income security and better safety from abusive and fare evasive passengers. To be an Uber customer, you must register with Uber, giving personal and credit card details. ­Payment happens automatically. If you're obnox­ious or violent ­towards a driver, you're easily traced.

Uber's surge-pricing system means that in peak demand prices go up, sometimes dramatically. But higher prices attract more drivers providing faster service to customers who are prepared to pay. Sometimes this backfires on Uber, but they are quick learners.

  1. Pages:
  2. Page 1
  3. 2
  4. All

This article was first published in The Australian.



Discuss in our Forums

See what other readers are saying about this article!

Click here to read & post comments.

10 posts so far.

Share this:
reddit this reddit thisbookmark with del.icio.us Del.icio.usdigg thisseed newsvineSeed NewsvineStumbleUpon StumbleUponsubmit to propellerkwoff it

About the Author

Ken Phillips is executive director of Independent Contractors of Australia.

Other articles by this Author

All articles by Ken Phillips

Creative Commons LicenseThis work is licensed under a Creative Commons License.

Photo of Ken Phillips
Article Tools
Comment 10 comments
Print Printable version
Subscribe Subscribe
Email Email a friend
Advertisement

About Us Search Discuss Feedback Legals Privacy