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I’m Talking About You, Uber September 10, 2015

Posted by Peter Varhol in Software platforms, Technology and Culture.
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The question is what am I talking about. You are so not about a “sharing economy”. Virtually all of your drivers aren’t sharing their daily cars, on their normal day to day business, to accommodate the occasional rider. Instead, they are buying extra cars to turn themselves into the modern equivalent of the taxi driver, without the taxi provided by the company. Calling this the sharing economy is a dangerous misnomer. This is a service, just like a taxi is a service.

But that’s okay, even if you’re not honest about it. At the same time, that’s the drivers’ decisions to make. I don’t think anyone is forcing them into what is essentially a part time business. And most taxi drivers are so-called independent contractors anyway, and are charged by the taxi company for the use of the car.  I am not clear on the economics, but it must work for many.

And certainly the occasional local ride concept was due for some significant disruption. Taxi service is fundamentally stuck in operations that are at least half a century old. It doesn’t work for the consumer any more. Uber works better for the rider (mostly), and can have some advantages for the driver. As well as some disadvantages, depending on decisions made by individual drivers.

The technology makes a difference. You no longer have to call a taxi company; instead, you signal from the app, tell them where you are and where you want to go, and they are generally pretty responsive.

But the technology only enables the work shift you are attempting. My short term guess: you will continue to be pretty successful, because almost everyone who uses taxis also uses smartphones. My long term guess: this is a transitional technology that will be put out of business decisively by the driverless car. I’m sure you’ve thought of that, and are looking to eliminate the middleman; i.e., the driver. This ultimately isn’t a new model for employment, or the so-called sharing economy. You will be first in line for the mass-produced Google car.

I’m not criticizing that, but I am criticizing your fundamental dishonesty in long term goals. You are not about the worker or the so-called sharing economy. You are about the disruption. You continue to lie, but that’s what you’ve done since your inception.

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