Question

why do you think uber can provide less expenisive seevice than can a taxicab firm? what are ubers major expenses?

PLEASE answer the question with 2 parghaphs at least

Answer 1

Uber iand iits icompetitors ihave imade istructural ichanges ito ian iold iindustry ithat ifunctioned imuch ithe isame iway iit idid idecades iago: iIndividuals iin ineed iof ia icab ihad ito ieither iphysically iwave iat ia itaxi ior icall ia ilocal icar iservice ito ireserve ia icar iat ileast ihalf ian ihour iprior ito ithe ipickup itime

Advantages iof iUber

Uber iand iits icompetitors ihave iseveral idistinct iadvantages iover itraditional itaxis:

Convenient iand iCashless

Instead iof ichasing idown ia itaxi ion ia istreet—or icalling iand iwaiting ihalf ian ihour ifor ia icar iservice—e-hail iapp iusers iare iable ito ihail ia icar ifrom iany ilocation iand ihave iit iarrive iwithin iminutes. i

Because ithe ipassenger's icredit icard iis ilinked ito ithe ie-hail iaccount, ino icash ichanges ihands. iUpon iarrival iat ithe idestination, ithe idriver ibrings ithe iride ito ia ihalt iand ithe ipassenger ican isimply iwalk iout iof ithe icar. iA ireceipt iis isent ivia iemail.

Professional iService

In imajor icities ilike iNew iYork iwhere ithe itaxi iindustry iis iregulated, imost icars iare ilater imodels, iwell imaintained iand ichauffeured iby iprofessional idrivers iwho ihave iproper icommercial iinsurance icoverage. i

Once ia idriver iaccepts ian iassignment, ipassengers iare iable ito itrack ia idriver's iposition iand iroute, iand icommunicate iwith itheir idriver iif inecessary. iA idriver ionly ilearns ithe ipassenger’s idestination iwhen ithe ifare istarts. iThis itakes icare iof ithe iproblem iof ibeing irefused iaccess ito ia itaxi ibecause ithe ipassenger iwishes ito itravel ito iundesirable iparts iof itown. i

Unprofessional idrivers iare iweeded iout ibecause ipassengers iget ito irate ithe idriver’s iperformance. iA iconsistently ilow irating iwill iforce ia idriver iout iof iUber ior iits icompetitors. iIn imany icities, ilike iLos iAngeles, iand istates iwith iless istringent iregulations i(compared ito iNew iYork), iaverage icitizens ican iprovide ithe iUber iservice. iThis iincreases ithe inumber iof idrivers iand imakes imore icars iavailable. iAll iof ithe iabove iand imore ifoster ia ipositive iexperience ifor iUber icustomers.

With isuch icheap iprices iand ireadily iavailable icars, icustomers iget iinto ithe ihabit iof itaking ia icar ifor ivery ishort idistances iinstead iof iwalking iand ithe icosts ican iadd iup iquickly.

Disadvantages iof iUber

Though ithere iare ihardly iany idownsides ifor icustomers, ithere iare ia ifew. iDrivers ialso iface iseveral idisadvantages.

Surge iPricing

"Surge ipricing" ifor iUber ior i"prime itime ipricing" ias iit iis icalled ifor iLyft, iis icontroversial iand ia imajor iannoyance ifor imost icustomers. iSurge ipricing iis ia imethod iof ipricing iin ithe ifree imarket ithat iinvolves iraising ior ilowering iprices idepending ion isupply iand idemand. iFor iUber icustomers ithis imeans ihow imany icars iare iavailable i(supply) iand ihow imany ipassengers iwant ito iride iin ithem i(demand).

Depending ion ithe iintensity iof idemand, iprices ifor iUber iservices imay ibe iincreased iby ia icertain ipercentage. iAt isuper ipeak itimes, ithey icould ieven ibe idoubled ior itripled. iThese ifare ihikes itake ieffect iduring iperiods iof ihigh idemand ifor icars, isuch ias irush ihour ior iduring irain iand isnowstorms.

Trip iCancellations

Although iUber iin igeneral iis icheaper iand imore iconvenient ithan ia ilocal icar iservice ior ilimousine, itrip icancellations iby idrivers ican icause idisruptions ito ia ipassenger's iplans i(e.g., imissed iflights). i

Low iFares iHurt iDrivers

Low iprices inegatively iaffect idrivers’ iearnings. iIn imajor icities ilike iNew iYork, idrivers iare iencouraged iby iUber ito ipurchase ilate imodel icars ithat ican icost iupwards iof i$60,000 ito i$70,000 i(for iSUVs iand iluxury icars). iSome idrivers istill irent icars iweekly ifrom ithird iparties. iThey ibear imost iof ithe icosts iassociated iwith ithe iservice, isuch ias ifuel iand irepairs. iDrivers icontribute igreatly ito ithe iUber ibrand.

Negative iImpact iof iPrice iCompetition

Price icompetition ican ibe idestructive ifor iany iindustry. iIncreasingly, iUber, iLyft iand iother ie-hail iservices iare iengaged iin ian iintense ibattle ito iprovide ithe icheapest iservice. iThey iare idirectly icompeting iwith iexisting itraditional itaxi iand icar iservices ifor iboth icustomers iand idrivers. iThis ihas iled ito ithe idrop iin itaxi imedallion iand iblack icar iprices iin iNew iYork. iThat iis igood ifor idrivers, ibut ibad ifor iother itraditional itaxi iand icar iservice igroups

Safety iConcerns

Safety iconcerns ihave ialso iemerged iin imany icities iand istates iwhere ithe itransportation iindustry iregulations iare ilax iand iaverage icitizens ican ieasily ienter ithe ie-hail inetwork ias iservice iproviders. iAlthough ithis ihas ia ipositive ieffect iby iincreasing ithe isupply iof idrivers, ithese idrivers imight inot ibe ias imotivated ito ireach ihigh istandards iof iprofessionalism iand isafety.

Initially, idrivers iused ito irely ion ithe isurge icharges ito imake iup ifor ilow ifares i(as icompared ito ithose icharged iby ilimousine ior icar iservices) iand iinfrequent itrips i(as icompared ito ithose iof itaxis). iHowever, iwith iprice icompetition iand ithe i