5.5a Uber Flashcards
Should Uber be allowed to compete with black cab drivers ?
2 reasons for, 2 reasons against and a conclusion
One reason why Uber should be able to compete with black cab drivers is because of their value for money. It is a business, and the aim of a business is to make money/profit. To make money/profit is to beat your competitors and win the audience, Uber have done this by having a similar quality of service to black cab drivers but also having a smaller price. It works out that getting an Uber around London can work out up to 34% cheaper than getting a black cab. This is of course because there are less stringent rules on ‘private hire’ cabs than there are on Taxis. The ‘Surge Charge’, which increases the rates drivers charge during busy periods, can negate thisas the rates can soar to near Black-Cab levels. However majority of the time the hire rates are reasonable.
Another reason why Uber should be able to compete with black cab drivers is because their ease and security of payment. The cashless Payment is another one of the fantastic perks of the Uber app. Customers take comfort in the fact that they are not required to hand over physical money to someone who is essentially a stranger. The user can also leave reviews of their driver if they feel so obliged, meaning the driver is determined to act professionally and pleasantly. The app also allows a personal sense of security as it is gps tracked and every journey is long on to a database, so there is a record of payment and location. If evidence of location was needed all black cab drivers can provide is an eyewitness account, but Uber can also provide, exact location, exact time and details form customer from the app.
Although Uber have many benefits as a company compared to black cabs, there are some drawbacks with basic issues. One reason why Uber should not be able to compete with black cab drivers is because of their own navigation knowledge. There is no road knowledge required for individuals to become Uber drivers. Local knowledge and being streetwise are two of the most valuable traits for successful Black Cab drivers whereas Uber drivers simply follow their Satellites navigation systems (on their phones), which can take them through heavily congested areas when quicker alternatives may be available. This shows black cab drivers to be of a high standard when actually traveling efficiently.
Another reason why Uber should not be able to compete with black cab drivers is because of black cab drivers level of credibility. Black Cab drivers are obliged to take a further driving test to prove they are worthy of carrying people through hectic busy streets. Known as the DSA Taxi Driving Test, this includes the teaching of proper techniques for picking up and dropping off passengers safely as well as much more rigorous procedures that Taxi Drivers are expected to do on a daily basis. Furthermore, Taxi Drivers must complete, and pass, an enhanced criminal records check to ensure they are to be trusted with transporting individuals. This check has simply been ignored by Uber until very recently, which may be the reason behind a number of reported assaults from drivers on passengers.
In conclusion it is fair to say that currently both services have areas for improvement, however customers are always likely to go where the price is most affordable, giving Uber the upper-hand in this business. I thinks that Uber and black cab drivers should be able to compete in the business world, as other business do. The only factor they both need is the consumer audience, the one that will get this will be the one that is more of value to the customer mane if Uber should be allowed to compete
Who will be the winners and losers from the U.K. pound sterling falling. ?
Winners from weak Pound
UK exporters who will be more competitive.
Foreign tourists coming to UK (a little ironic given context of Brexit vote)
Foreign investors who find British assets/housing cheaper.
UK firms who earn profits abroad. (e.g. firms who have investments in the US)
Losers from weak Pound
Foreign firms exporting to UK (e.g. Irish farmers hit by fall in Sterling)
British holidaymakers going abroad will find US and EU more expensive
Foreign workers in the UK. Working in the UK is relatively less attractive (could reduce incentive for net migration to the UK)
What type of company is Uber London ? Public limited company or Private limited company ?
Uber is a private limited company
Private Limited Company
Private limited company is owned privately by a small group of people or by family members. They are not allowed to offer shares (in the company) to the general public and can operate through just one director. A private limited company can not trade its shares on the stock market.
Private companies have several advantages over public companies. A private company has no requirement to publicly disclose much, if any financial information; such information could be useful to competitors. Private companies also have far less government regulations then public limited company.
Public limited company is owned publicly by a large number of investors. Public Limited companies are listed in stock market and there shares are actively traded among its investors.
Public limited companies can raise capital easily by the sale of its securities.
Who are Uber’s main competitors ?
LYFT
Revenue: $700m (2016)
MYTAXI
Revenue: Unknown
GETT
Revenues: $500m (2016)
What techniques have uber used to grow within the last 5 years?
Uber has completely changed the way of getting private transportation done in several key ways. First, their smartphone app is integrated with Google maps so that you can see how far away the nearest cars are, set a meeting point on the screen, and hail a car to meet you there. You can even see your driver’s information (including ratings) as you watch the car get closer to your location.
Uber drivers call or text to confirm that they’re on the way, giving you peace of mind that your order was received. Once your car arrives (usually within a few minutes), the driver greets you by name and you hop in. The cars are black cars and SUVs. Uber X, a lower cost version of the service, is made up of a fleet of well maintained sedans.
Once you arrive at your destination, the app charges your card, and you’re free to go on about your day. There’s no need to deal with cash, change, tips, or receipts. You just hop out. (Source) Uber has removed the friction from the typical taxi cab transaction, and made it highly enjoyable in the process.
There advertising technique are not complicated, they simple use word of mouth and a website to show jobs
What is a tariff ?
a tax or duty to be paid on a particular class of imports or exports.
How does a strong pound affect imports?
The Effect of Exchange Rates. The value of exchange rates affect the demand for exports and imports. An appreciation of the pound (pound becomes stronger) will lead to exports becoming more expensive and imports cheaper. This will harm exporters and increase the leakages from the circular flow of income.
What is a stakeholder?
A stakeholder is any individual or organisation that is affected by the activities of a business. This means that the business has some impact on their lives.
E.g. Tesco’s stakeholders could consist of employees/ staff.
What is Uber ?
A private taxi service
What should Uber do to survive ?
“Keep up with the times “ stay on top of the trends and change accordingly
