Reference article: https://techcrunch.com/2019/11/25/uber-has-again-been-denied-licence-renewal-in-london-over-safety-risks/
Uber, the revolutionary technology company that widely popularized the concept of sharing economy, has once again been denied its license in London. According to Telegraph, a reputable news source, London is one of the group’s ‘fab five’ cities that account for around a quarter of global revenues. This indeed takes a huge toll on Uber, particularly when it is rumored that they are intending to go public.
This brings a huge concern over Uber. Is it a truly a technology company, or is it a taxi company? In my previous post, we explored WeWork’s claim on being a technological company, even though they’re obviously a real estate company. In this case, Uber claims itself as a technology company, whereby they do not adhere by the regulations of most transport authority worldwide. For example, in Singapore, taxi drivers are required to obtain a provisional license, which includes a test, before one can be issued a taxi license. When Uber and Grab (which bought out Uber in 2018) came into Singapore, this regulation was bypassed, effectively allowing anyone, so as long they have a car, to provide taxi service via the Uber app. To counter this, Singapore’s Transport Authority took a preemptive approach and implemented a law early this year that requires all Uber and Grab drivers to possess a provisional license in order to be legally allowed on the street. Uber escaped this slaughterhouse as it was bought out by Grab.
Bringing parallel to this case, we see a roughly different situation. Unlike Singapore, London’s transport authority and Uber has failed to come to an agreement. Instead of adopting a collaborative approach, Uber went in hard-headed, opposing the transport authority and insist to weaver their way through legal means. This was the second time that Uber’s license has been revoked. In mid-2018, the company’s license was regranted, and the authority was closely monitoring its situation. However, it was observed that Uber has once again failed to comply with the authority’s guideline.
Personally, I believe that Uber should be treated as the same level of a Taxi company. Essentially, they are providing the same service, with a different pricing system. Uber’s entry into the market has effectively degraded the culture of black cab in London, which is also known as the icon of London. This also creates an unrestricted competition pool where there is a mismatch of supply and demand. One of the transport authority’s main responsibility is to ensure a fair match of supply demand, which will then create a favorable price for the customer, as well as maintaining a reasonable income for the drivers. With such entry, it clearly disrupt the industry as a whole, and the need for regulation is essential.
But what do you think?
- Is Uber a taxi company, or a technology company? Considering they are branching out to other wings (e.g. 2020’s UberAIR which will provide short flights using VTOL aircraft, Uber Works which matches Temporary workers with potential jobs and employers), there are many arguments that can easily state the opposite too!
- Or do you think there are any other business opportunities Uber can tap on to better ground themselves as a technology company?
- What do you think about Uber?
References:
https://thenextweb.com/asia/2018/03/26/ubers-southeast-asia-operations-acquired-by-grab/
https://www.todayonline.com/singapore/lta-proposes-licensing-ride-hailing-firms-grab-and-gojek
At the beginning Uber was supposed to be for earning extra little money or giving a ride for a small fee. However now I think that Uber should show why they think to be more technological company than normal taxi, because the difference is really blurred.