Uber and its competitors have several distinct advantages over traditional taxis: These fare hikes take effect during periods of high demand for cars, such as rush hour or during rain and snowstorms. Wait for it... Uber is going to have a monopoly and prices will go up. 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. It would suffice to state here that the Uber economy represents the future of the work model wherein anyone and everyone can become gig workers and freelancers without having to give up their day jobs.Indeed, research and surveys have shown that there are many full time workers who drive for Uber and other gig work companies during their spare time to supplement their incomes and make hay while the sun shines.However, is it the case that the Uber economy is a new dawn rising or is it the case that it represents another opportunity by the capitalists to fleece workers and make them work in a model where the only winners are the owners and not the employees? Depending on the intensity of demand, prices for Uber services may be increased by a certain percentage. It is clearly not an example of the sharing economy. Drivers can log in and out of the system anytime and choose their own hours. The answer to this depends on whom you talk to and whom you interview.For instance, there are many who swear by the freelance model of work since they can masters of their time and pursue other occupations as well as decide to set the working hours themselves instead of being dictated and ordered by the straightjacket of the traditional work model.Moreover, these people reckon that freelance work and gig work represent the future and hence, it is better to get in there early and reap the rewards of the emerging economic model where employment does not mean the earlier generation emphasis of a company that hires and keeps workers for life and instead, represents the brave new world of work where one is paid by the hour or for each parcel of work done.Having said that, there are others who point to the fact that the freelance economy or the Uber economy is a model where the workers do not receive health, social security, and 401(k) or pension benefits, in addition to not receiving any paid leave or time off for medical reasons.Indeed, there is a growing chorus of opposition to the emerging freelance and gig economy or the Uber economy since many believe that this is no different from the colonial model of exploitation of workers where hourly wages and per task payment is the norm with no longer term benefits, no annual bonuses, and above all no medical and pension benefits.Further, when one is performing freelance work, there is no guarantee that such gig work or the Uber model would let them continue even if they fail once or twice.In other words, unlike traditional occupations where the employers tend to take a longer term view and reward and take action on the workers depending on their performance over a broader time frame, the emerging world of work is a ruthless and Uber competitive place (literally as well as metaphorically) where one is as good as the last work or the gig done and there are virtually no laws or regulations that would protect the workers and their rights.Considering the pros and cons of the Uber economy, there are many who are filing for lawsuits and petitioning the government to regulate the emerging model of work so that the workers are not at the receiving end.Indeed, there are some class action lawsuits pending in the United States and upcoming to be heard in the next few months that seek more governmental oversight over the industry that specializes in freelance work.While the petitioners are not asking for a complete overhaul of the freelance or the gig model of work, nonetheless, they want the government to ensure that the workers are not shortchanged and that companies such as Uber follow some work practices where the workers are not always at the receiving end.Having said that, it must also be noted that the emerging Uber economy is something that no one can stop or slow down since the future of work would indeed be a model where there would be more sharing economic practices and companies such as Uber would be the go to employers for many.Management Study Guide is a complete tutorial for management students, where students can learn the basics as well as advanced concepts related to management and its related subjects.
At super peak times, they could even be doubled or tripled. This takes care of the problem of being refused access to a taxi because the passenger wishes to travel to undesirable parts of town. Uber is a lot. T he "sharing economy" – typified by companies like Airbnb or Uber, both of which now have market capitalizations in the billions – is the latest fashion craze among business writers.
Increasingly, Fair point. 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 prices negatively affect drivers’ earnings. This means more profit for drivers, all else being equal. Collaborative consumption is the shared use of a good or service by a group through an arrangement that divides the actual cost or purchase price. A receipt is sent via email. Indeed, Uber has become a household name worldwide because of its innovative and inventive approach to providing cheap and reliable taxi and car services through its mobile and Smartphone app that connects the drivers with the passengers.This is the reason why this emerging freelance and gig work model has been called the Uber economy with its attendant advantages and disadvantages.To start with, there are many pros or advantages of the Uber economy. Uber and its competitors have made structural changes to an old industry that functioned much the same way it did decades ago: Individuals in need of a cab had to either physically wave at a taxi or call a local car service to reserve a car at least half an hour prior to the pickup time. Some unique insights and big numbers stand out in EDR Group’s study on Uber’s economic impact, which focuses on Uber’s ridesharing business. Once a driver accepts an assignment, passengers are able to track a driver's position and route, and communicate with their driver if necessary. Drivers are also spared the stress caused by favoritism and office politics because the app renders dispatchers irrelevant.
This article examines the pros and cons of the emerging freelance or the gig work based economic model which is also known as the Uber economy so called since the ride sharing app based car service, Uber is the pioneer and the trendsetter in this new paradigm. Uber Black is certainly innovative because of the app’s booking, payment, and ratings functionalities. A consistently low rating will force a driver out of Uber or its competitors. Investopedia uses cookies to provide you with a great user experience.