UBERIZATION OF ECONOMY

• The uberization of economy :  the concept

The Uberization term used for the first time by the CEO of Publicis, Maurice Lévy, installation December 2014. But this term did not stop feeding the debates and the conversations of year 2015.

He worried then about the success of the company of driven cars, which generated several social movements since its birth. The new economic model opens a debate on the work, the forms which it can take and the social model which surrounds it.

• The uberization of economy around 3 pillars 

► the digital world arrived at a big maturity today. Numerous companies master the digital innovation and the new technologies from now on. Start-up specialized in the informatics development are very numerous, very dynamic and very active.

In parallel, the Web access by the target consumers is totally generalized. Smartphones, tablets, connected objects give an access, which is simple, easy and democratized to the Web applications, thought for the largest number.

► the experience of consumption became a major discriminator: the consumer looks for a better service, that is a faster, more ergonomic, more economic service.

► the uberization of economy has a real impact on jobs and wages. Some persons will highlight the advantage of flexibility, and others will highlight the danger for the security and stability of jobs.

• The Uber and taxi debate 

The Uber and taxi debate created a legal problem. Indeed, legally Uber pop was qualified as ride sharing, yet as the ride sharing defines itself as the use in common of a power-driven ground vehicle by a driver and one or several passengers, made in not expensive title within the framework of a travel which the driver makes for his own account. Undoubtedly Uber pop did not answer to this qualification.

Another legal problem is the regulated occupations. Indeed, the profession of taxi is one of these regulated occupations. Indeed, an administrative authorization of car Park (otherwise called license) is delivered to them in limited number.

But the real problem started with the publication of the Arnand-Rueff rapport. Indeed, this report has already drafted and underlined the fact that the statutory limitation of the numbers of taxis damaged the satisfaction congealed the acquired situations. That is why in 2009 the legislator opened to the competitors the market of the preliminary situation in the vehicles of tourism with drivers.

• Uber's advantages and drawbacks

Uber is the most controversial service because it shoves with traditional model of economy and is seen as unfair competition.

To understand the success of the application Uber, we can talk about 3 advantages.

Advantages 

► there is on the application a system of rating.

It is easier for the company to improve their services and insure quality to their consumers. Also the services offered by Uber are more predictable.

► furthermore, to get an uber, one just has to click in order to book a car, and one can know where is the driver thanks to the map and how many time one will wait.

► Uber is a great alternative to traditional taxi because it offers similar services with lower prices. When it comes to money the drivers are safe thanks to several rules instituted by Uber.

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