Articles on Taxis
Find The Ideal Aldershot Taxis To Take You Home, To The Airport Or Elsewhere – 23rd October 2017
Where To Find The Best Camberley Taxis – 28th August 2017
Taxis play an important role in urban transportation systems, both in economic and mobility terms. In the case of the former, it provides employment for a large number of people and circulates significant amounts of money. In the case of the latter, it is a flexible means of transportation capable of arriving at any destination.
UBER – A negative impact
“Surge pricing” for Uber or “prime time pricing” as it is called for Lyft, is controversial and a major annoyance for most customers. Surge pricing is a method of pricing in the free market that involves raising or lowering prices depending on supply and demand. For Uber customers this means how many cars are available (supply) and how many passengers want to ride in them (demand).
Depending on the intensity of demand, prices for Uber services may be increased by a certain percentage. At super peak times, they could even be doubled or tripled. These fare hikes take effect during periods of high demand for cars, such as rush hour or during rain and snowstorms.
Although Uber in general is cheaper and more convenient than a local car service or limousine, trip cancellations by drivers can cause disruptions to a passenger’s plans (e.g., missed flights).
Safety concerns have also emerged in many cities and states where the transportation industry regulations are lax and average citizens can easily enter the e-hail network as service providers. Although this has a positive effect by increasing the supply of drivers, these drivers might not be as motivated to reach high standards of professionalism and safety.
Low Fares Hurt Drivers
Low prices negatively affect drivers’ earnings. In major cities like New York, drivers are encouraged by Uber to purchase late model cars that can cost upwards of $60,000 to $70,000 (for SUVs and luxury cars). Some drivers still rent cars weekly from third parties. They bear most of the costs associated with the service, such as fuel and repairs. Drivers contribute greatly to the Uber brand.
Initially, drivers used to rely on the surge charges to make up for low fares (as compared to those charged by limousine or car services) and infrequent trips (as compared to those of taxis). However, with price competition and the continued intake of new drivers by Uber and its competitors, drivers’ average earnings are being pushed downward. This means that drivers have to work longer hours to earn an income comparable to what they would have earned a year or two ago.
While this means that there is a larger supply of drivers, longer hours behind the wheel jeopardize the safety of both drivers and passengers. These conditions coupled with customer trip cancellations—which can cause a driver to miss opportunities to make money during the busiest hours—can have a negative impact on drivers’ earnings and morale.