Uber is a privately-owned ride sharing service which operates throughout the world. Uber; which was founded in 2009, uses a smartphone application to receive requests for a ride. The Uber’s mobile app for both iPhones and Android phones, was launched a year later, in 2010.
The app allows dispatching requested trips to be seen by the drivers, as well as the driver’s location to be tracked by the customers. The UberX program hires any qualified driver with an acceptable vehicle. Because Uber can offer lower fees, which expands Uber’s appeal to a broader cross-section of the market, the service has become extremely competitive with traditional taxi services.
The service is available in dozens of countries and hundreds of cities worldwide.
Since its beginning, the company has been met with protests from taxi drivers and taxi companies who state that ride-sharing companies are illegal taxicab operations. They also claim that Uber compromises passenger safety and is engaged in unfair practices.
A taxi license or a taximeter is not requirements for Uber’s drivers. All payments are made exclusively through Uber and not with the driver personally and are similar to metered taxies. During high demand times such as Halloween, New Year’s Eve, or severe inclement weather, Uber increases its prices to “surge price” levels, which encourages more drivers to work.
In 2013, USA Today named Uber the “tech company of the year”. Today, the company faces competition from other lower-cost, real-time ride sharing startups such as Lyft, Sidecar and Haxi. To compete at lower price levels, Uber has introduced UberTaxi; which partners with local taxi commissions, and UberX; a program for non-luxury cars such as Toyota Prius hybrids.
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