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.