Uber

21st Century Technology Confronts 20th Century

Regulation
April
2020
 Introduction
1. Uber started operations in
2010,washington Dc.
2. It supplied a service for consumers to
require a limo using mobile phone.
3. Limo would arrive in few minutes and
charge of the journey would be credited
by billing card.
4. More pricey then Taxi
5. It is more affordable than a standard
limo service
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Issues
• Difference in regulations
between taxi and limousines.
• The labeling and appearance
of vehicles.
• (Taxi’s usually shows clear
identification but limo are
typically black with no
identification)

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How the passenger contacts the service provider.

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The fare structure (because taxi’s have taxi meters which shows fare structure and luxury
vehicles don’t have)

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Regulatory Challenges

• Uber didn’t fit as a taxi or a limousine

regulatory regime.

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• Uber didn’t seek
preapproval from
regulatory agencies before
entering a city.

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• $5000 fine plus 90 days
jail for violations.

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• Couldn’t start operations in
Las Vegas because of state
laws.

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 Technology

• Poor car conditions

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• Difficulty in finding rides

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• Limos are expensive

• Need of local transport

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 Uber Model

• Mobile application for customers

• Car at doorstep
• Fares were nominal
• An email receipt would be sent
• Fare was according to time and distance

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• Uber didn’t own its cars
• During busy times fares
would increase.
• Fare paid would be divided
between driver and uber with
80 share of the driver.

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• Uber was very advantageous for its
drivers
• There was a cross rating system to rate
each other ( customer/ driver)
• Uber would make more money for the
drivers who shifted from taxicab to uber

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UBER’S
Experience in
Washington DC

• Uber launched it’s service in Dec 2011.

• Many DC residents who didn’t own a car
took advantage of this service.
• Uber became popular among the people
due to its low prices.
• By July 2012, DC had become Uber’s
third largest market.

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 Growth of
UBER in DC

• The other taxi cabs were dirty and

in poor conditions which would
create an unpleasant experience for
the passenger.
• Also a survey showed that 69% of
daily passengers felt that the taxi
service was worse as compared to
other American cities, this further
led to an increase in goodwill of
Uber. 17
• Some of the daily consumers of taxi/cab
service mentioned how the drivers would
refuse to take a passenger if the
destination was a bit far.

• Sometimes the drivers declined the rider

due racial reasons.
• Also when a driver saw a fare which he
didn’t wanted to pickup he would switch
on the in service light.

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Regulations
in DC

• Different regulations for Limo

and Taxi.
• Didn’t seek preapproval, relied
on its existing license.
• No competitive advantage in
market after new regulatory
minimum fare prices

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 Alternatives

• Seeking help from officials and

asking for their approval before
entering new markets.
• Uber should have gained a better
understanding of regulations
• It should not oppose the legislation
but should persuade the council.

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THANK
YOU!
Hammad Ali
Sana Rizvi
Usman Aftab
Akbar Khan
Email
180759@students.au.edu.pk