Uber Taking out the Taxi Industry

As Uber is coming more and more popular, the taxi industry is suffering. Uber is a location-based app that lets users hire a private driver and take them to their needed destination. Uber is destroying the taxi industry in many ways.

First, drivers would rather work for Uber and in the taxi industry because Uber drivers earn more money than taxi services do. Uber drivers get a higher hourly earning and the passengers take longer Uber rides on average than traditional taxi drivers.

Second, timing is everything in this fast pace world. People are less patient and rather than calling a taxi and waiting twenty to thirty minutes for the taxi to arrive, people can now just call and Uber that will usually come within five minutes.

Third, a lot of people now don’t carry cash on them. This is evident in the amount of applications that have evolved such as Venmo and Apply Pay that let a user put their credit card information into their phone. Therefore, the majority of people don’t have cash or even their card out with them. Uber allows the user to pay directly from their phone without the need for cash or a physical credit card on them.

The concept of Uber came up because it is a perfect example of disruptive innovation. Despite how Uber has numerous advantages, the taxi industry is definitely suffering as a result.

https://www.forbes.com/sites/adigaskell/2017/01/26/study-explores-the-impact-of-uber-on-the-taxi-industry/#46100c5216b0

15 thoughts on “Uber Taking out the Taxi Industry

  1. I completely agree with this article. In this era, most people do not carry cash often and prefer to use a card or an app like Venmo or SquareCash that let you send money from your bank account to someone else. Companies like Apple and MasterCard set up quick pay options as in Apple Pay and MasterPass for people to pay with there phones rather then there own card. I think that we will see this take off in the near future and people won’t even have to carry there credit or debit card anymore but rather just tap there phone to the machine and instantly pay for the item. Also people want anything as fast as possible and Uber is providing that . Cab companies on average take 20-30 minutes whereas uber is 5 minutes. I believe in the future that Uber and Lyft will fully take over the cab industry soon because with technology progressing, its so easy to take out your phone and call an uber and 5 minutes later it shows up. Uber was a great invention and something I use very frequently.

  2. I agree with this post wholeheartedly for many reasons. Uber has been the most genius invention over the past few years in my opinion. Like noted, Uber has taken away the need for any cash of even credit cards. This is huge because in the new generations, there are less people carrying cash in their pocket wherever they go. Personally, I think the best part about uber is anyone can be an uber driver (as long as you are over 21 years of age). Any individual cannot just sign up to be a taxi driver. The market for taxi drivers is clearly a lot more limited which has led to the continued success of Uber. Even though Uber has been consistent and has satisfied their customers for the most part, I do believe that Uber can fail in the future. Yes, Uber has taken over the taxi industry, but there are a few aspects to Uber that I can see any individual taking advantage of. For example, Uber has many lawsuits that they are currently facing that may cost them millions of dollars in the future. In addition, there have been reports that say Uber is not on the positive side when concerning their balance sheet. That said, I see Uber as one of the greatest inventions but I can also see it going down the drain in the future.

  3. I completely agree with the fact that Uber is taking out the taxi industry. Ubers are cheaper, quicker, comfortable, and convenient. Today, coming home from the airport I decided to take a taxi instead of an Uber because the taxi was already pulled out front. I immediately regretted my decision after I got into the sweaty taxi and had to pay $96 when if I took an Uber, I would’ve only paid $50. Taxi’s have tried to make their company better by installing credit card machines into their cars instead of making people use cash, but it still is not as convenient as an uber. Another company that is taking away from taxis is Lyft, which is basically the same as uber. With the combination of these two companies, there is going to be no need for taxis anymore. Even going to New York City, where taxis thrive, I still find myself using my Uber app out of convenience and price. I think that taxis are slowly going out of business, and in a couple years from now everyone will be using the Uber app.

  4. I totally agree with your points. When Uber first came out and went viral in China, there was a protest among traditional taxi drivers who believed Uber had taken too much business. It definitely shows how such disruptive innovation affect the related industry. Thus, I believe it is important for taxi companies to at least make some adjustments in policies and services. Uber has also offer choices for black cars which also impacts the higher end car rental services. It is definitely far more affordable than traditional limos. There are articles arguing Uber as a non-disruptive innovation. In my opinion, the emergence of Uber might not perfectly fit into the definition of “disruptive innovation”, it definitely is a smart implementation of disruptive technology. And with that, consequently impacted the market in its own unique way. I believe that in the future, the trend will not be benefiting the traditional taxi business. As more and more people using smartphones and carrying less cash, virtual transactions will be more and more popular. While bigger cities’ taxi companies might still find ways to thrive, those in more smaller cities will definitely suffer.

    Source: http://fortune.com/2015/11/17/uber-disruption-christensen/

  5. I agree with this article wholeheartedly. I know that I and many of my friends never carry cash with them or if they do, very little. We are coming to an age where it is way more common and acceptable to use card or venmo to pay for an item or service. I cannot remember the last time I went somewhere and was unable to use my card to pay. This is reason one for uber’s success. The next is the fact of how easy it is to call, especially if it is an area you are unfamiliar with. It takes the whole direction step out of typical taxi hassle. Not only that but you have a background to your driver with a history showing if he/she has done well in the past. It is so easy to use uber that I even got my parents to use it and accept it as a normal use of transportation.

    http://fortune.com/2016/04/17/uber-and-lyft-la-taxi-industry/

  6. I agree uber and other companies like it for example like lyft are one day going to run the taxis out of business. Overall uber is a much safer and easier way to get around. Taxi’s are still around for now, when I go to NY it still looks like a sea of yellow but you’ll also see on the taxis the Uber sticker. So in my opinion it won’t really be the taxi drivers loosing more of the taxi companies because many of them are doing both taxis and uber. Another awesome feature that uber offers is picking what size vehicle you would like and splitting the fare these are options you don’t really see in a taxi. So overall I feel as though uber will take over the driving world but until that happens taxis will still be around

  7. I completely agree with this article. I think Uber is a fantastic app. I have used it countless times, while I have only been in a taxi a few times. Uber is definitely a disruptor of the taxi industry. Uber has become more and more poplar each year and now there are more apps like it, such as Lyft. Disruptive innovation is not only occurring in the taxi industry, it also is occurring in the TV and streaming industry. Netflix is a huge company that I believe is another example of disruptive innovation. I find Netflix similar to Uber, in that it has becoming more popular recently and they are taking away from other competitors, with their growing popularity. I think Uber and Lyft will eventually take out the taxi industry as a whole. Similarly, I think, eventually, companies like Netflix and Hulu will be the main thing people watch, rather than live television. I think this because people want to watch something right away, that is easily accessible, and doesn’t have commercials. Netflix is disrupting the TV industry just how Uber is disrupting the Taxi industry.

  8. I really agree with your points about Uber and how it is a good advantage of disruptive innovation. What I really agreed with was how people rarely carry cash anymore. I know I never have cash on me and use my card and school ID for everything I buy. The article I found states that “Roughly eight in 10 people carry less than $50 cash in their wallets on a regular basis, according to a new report from Bankrate.com. Close to 50 percent of Americans carry $20 or less each day” I thought this was interesting because it shows how many people are like me and use their card for most things.

  9. I completely agree with this article. It is true that Uber is taking over the taxi industry and it is becoming very successful. Because of Uber success other companies has started to try and replicate Uber, such as Lyft. Lyft for the past couple of months has found some form of success as it is cheaper than Uber, but it is not as globally recognized as Uber.

    One point I did not see you mentioned was that how easy it is to get a uber delievered to you. I think that plays a huge role in regards to its success. I can relate from personal experience when I wanted to call a cab and I had to search for several minutes to find a can company that will actually receive my call. Uber is extremely easy and very learnable. Since we are learning in a technology driven world Uber is one of the results from technology starting to take over.

    Source:http://www.businessinsider.com/how-to-use-uber-2016-5

  10. I completely agree with this article. It is true that Uber is taking over the taxi industry and it is becoming very successful. Because of Uber success other companies has started to try and replicate Uber, such as Lyft. Lyft for the past couple of months has found some form of success as it is cheaper than Uber, but it is not as globally recognized as Uber.

    One point I did not see you mentioned was that how easy it is to get a uber delievered to you. I think that plays a huge role in regards to its success. I can relate from personal experience when

  11. This is a perfect example of disruptive innovation which we learned in class. I also agree that Uber will eventually take over the taxi industry. Uber is more convenient and more technologically advanced with their app. I think Uber is in many ways like Airbnb. They are both great examples of disruptive innovation. I read an article of the topic of Airbnb and how it is negatively effecting the hotel industry. According to the article, ” In 2015, only 15 percent of leisure travelers surveyed had used Airbnb in the last 12 months, while in 2016, that number rose to 19 percent. Morgan Stanley predicts that number to rise to 25 percent in 2017. ” This big steady rise is very concerning to the hotel industry, because as each year passes Airbnb gains a larger percentage of the market share. With a larger market share and retention rate, the less people will continue to use hotels. I think users really like how they can use an app to search all the available options and how Airbnb is more flexible in its scheduling compared to hotels It will be very interesting to see if Airbnb continues to rise at this rate and renders the hotel industry useless. Airbnb is ruining the hotel industry like how Uber is ruining the taxi industry.

    https://skift.com/2017/01/04/airbnb-is-becoming-an-even-bigger-threat-to-hotels-says-a-new-report/

  12. This is a perfect example of disruptive innovation which we learned in class. I also agree that Uber will eventually take over the taxi industry. Uber is more convenient and more technologically advanced with their app. I think Uber is in many ways like Airbnb. They are both great examples of disruptive innovation. I read an article of the topic of Airbnb and how it is negatively effecting the hotel industry. According to the article, ” In 2015, only 15 percent of leisure travelers surveyed had used Airbnb in the last 12 months, while in 2016, that number rose to 19 percent. Morgan Stanley predicts that number to rise to 25 percent in 2017. ” This big steady rise is very concerning to the hotel industry, because as each year passes Airbnb gains a larger percentage of the market share. With a larger market share and retention rate, the less people will continue to use hotels. I think users really like how they can use an app to search all the available options and how Airbnb is more flexible in its scheduling compared to hotels It will be very interesting to see if Airbnb continues to rise at this rate and renders the hotel industry useless. Airbnb is ruining the hotel industry like how Uber is ruining the taxi industry.

  13. I really enjoyed learning about this in class because I never truly realized how disruptive Uber is for the taxi industry. I also was wondering if it really disrupts anything within the suburbs, such as Penn State. 10 years ago, were there Taxis taking people to parties all night?! If that were the case, then the taxi industry truly got robbed, because I’ve never seen a taxi drive by on campus. I feel like in these kinds of areas, other services like Lyft are a form of disruptive innovation for Uber itself. These types of companies can easily use promo codes to win over customers. While Uber is a genius creation, its creators are going to have to deal with a lot of competition in the years to come. With iPhones able to connect to just about anything through the internet of things, another company similar to Uber could come up with even more innovations that give customers an even easier, faster way to travel. For now, Uber may be the top dog, but I wouldn’t be surprised if another disruptive innovator came and stole the show! I attached a link that discusses if Uber may be in danger of going under.
    https://eandt.theiet.org/content/articles/2017/06/is-uber-in-danger-of-going-under/

  14. I really agree with your opinion about the Uber. I think Uber will more popular and conquer the taxi market. So many countries worry about the situation, which taxi industries go bankrupt. For example, in South Korea, the government not allowed the Uber system in their country because of preventing taxi companies from the Uber’s advantages. However, I think the government will allow the Uber system in South Korea. Because it is hard to reject the necessary technology what user really need. When I searched the internet I found that there are six factors why Uber success. First, many people can be Uber drive so these competitive circumstances make a reasonable price to customers. Second, Uber can increase the employee rate because more Uber drive increases more service increase. So people who need a job can work in Uber. Third, Uber system is the fast mover on using technology as catching what people really need. Fourth, Uber using the UX design. People who used Uber recommend their friend’s and posted on the social media. Therefore, the experience, which taking Uber can share on the all of the worlds. Fifth, Uber can deliver their customer safely, however, the price is really reasonable the other taxi services. Sixth, as technologies are developing the old taxi industries are going to bankrupt because they still use phone call and text message. However, these days use more internet, wifi, and GPS. After I read these factors, now I understand why the Uber is dramatically increasing. I would recommend that you should append these factors on your post.

    https://taxistartup.com/blog/6-key-success-factors-behind-uber-growth/

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