Taxi vs Uber: A Comparison of Conveyance Services

Taxi Cab Industry
Incubator Innovation and New Technologies
Innovation and New technologies
Name of the Author
University Name-

EXECUTIVE SUMMARY
Current report under study unveils the two conveyance sources that are widely used
by public nowadays. The whole research subject revolves around the taxi and uber services.
The initial part of report deals with the meaning of both the services in the introduction
section. The report is leaded by the facilities offered by both the facilities and their
advantages and disadvantages. Later in report a comparison is made between both the
services highlighting the advantages one offer over the other. However the whole topic is
taken from a single perspective and any reader may have a different one. These two
incubators are the key persons who take the strategic approach to implement the effective
business approach. However, with the changes in technologies, every incubators and
entrepreneurs needs to adapt with the economic changes by undertaking the new technologies
and strategic program.
INTRODUCTION
With the ramified economic changes, many incubator and entrepreneurs are tapping
the market with their business ideas and research plans. These incubators have object to
create value on the investment and create strong brand image in long run. As evident from
surveys and recent researches, taxi and uber are two most important transportation services
used by people nowadays. Basically, a taxi service works on a contractual basis by getting a
contract from the local government body to work in a particular area, town or city. In this
facility, the customer needs to make a call to the company that have got the contract to put a
request for a taxi. The pickup location and drop destination are the details that are required to
be mentioned. The company after getting the request call put forward the same to a driver
who is active at that moment to pick and drop the passenger. Usually, the payment is
collected by the driver at the end of ride on behalf of the company. Out of the whole payment
received, the driver is bound to receive certain fixed percentage (Cramer, & Krueger, (2016).
Uber on the other hand gets no contract from government. A company on its own end
work area wise and an application is used by the company as a portal from where the
passengers can book an uber service for themselves or someone else. The people who want to
work for the company offer voluntarily to work. When the company accepts them to work
for it, they present their availability or non-availability as and when required. The customer
who wants an uber uses the app to book a ride for him and enters the pickup and drop

location therein. As and when the ride is confirmed, the details of the driver are shared with
the passenger and vice versa. Later the cab arrives and the ride is undertaken. The payment
can be made by the passenger either electronically through online portal on app or can be
deducted from online wallets or could even be paid in cash to the driver. A certain
percentage of the payment is then transferred to the driver (Christensen, Raynor, &
McDonald, 2015).
ADVANTAGES OF USING A TAXI
The main advantage that a taxi has is that as the taxi is hired through a company
contracted by government it has to follow the rules and regulations that are more strict and
rigorous. This turns out to be a benefit to the customer as his trip is assured and chances of
cancellation or delay are less. The taxi is insured well and the customer is offered higher level
of flexibility in a manner that he or she is able to change the route or the destination or add
destinations for the duration the taxi is booked by him or her. Along with it, the passenger is
able to add more passengers along the route. Further if the passenger like the driving skills of
a particular driver, he can request to get the services from the same driver in future. The Taxi
business has been gaining momentum throughout the time which reflects that if new rivals
come up in the taxi business industry with their advance technologies then they might beat up
the market (Cannon, & Summers, 2014).
As the people hired by company are mostly local, they have more knowledge about
the local routes and short cuts. Further, the tests taken by the companies before hiring drivers
are more tough and vetting for the drivers. As a result the quality of drivers is far better than
other services. The cost of taxi is usually same at all times and no surge costs are there. Uber
and Ola are consistently giving the tough completion to each other in market and infusing the
advance technologies to strengthen the market share on international level (Wallsten, 2015).
ADVANTAGES OF USING AN UBER
As an app portal is used for booking rides, the customer is able to get full details of
the driver as soon as a ride is booked. Ratings are also visible. The ride status can be shared
by the passenger to be used as a safety tool if any emergency situation arises. Further, there is
a facility available with the passengers to review the drivers and if several complaints are
made regarding a particular driver, the company even block that particular person to be an
Uber driver (Cohen, & Kietzmann, 2014). An important advantage is getting a hassle free