The first time I came across the word ‘Uber’ I dismissed it in my mind. A few months later the word came up again and I ignored it. But when I heard it in the news these past weeks, I had to go out of my way to ask people about it. There was just too much buzz going on with this four letter word.
‘Uber’ is not a place. It is not a nickname of a person nor is it an authentic food dish. It is not a character from Star Wars or some sci-fi movie nor is it a computer jargon used by techies. It is actually a name used for a new form of public transportation called “ridesharing.”
I was surprise to find out that many of my friends and the people I work with know about ‘Uber.’ In fact, quite a few of them are regular ‘Uber’ riders. My first advice to them, “be careful.” Their response, “we feel safer with ‘Uber’ than with the regular taxi cabs around town.” So, this was what prompted me to write about it.
In 2009, Travis Kalanick and Garrett Camp founded ‘Uber’ which was officially launched in San Francisco in June 2010. It is a “ridesharing” service using a smartphone application to arrange rides for the customer. It is available in 45 countries and 200 cities worldwide. It is also valued at $18.2 billion according to The Wall Street Journal (November 7, 2014).
I’m pretty sure that the owners of this new system of transportation were inspired by the carpooling system which was encouraged in the United States of America to decongest the freeway traffic years ago. Noting that the private driver has extra seats in the car, carpooling which was free was converted into a business. It’s a win-win situation for both the rider and driver and this is probably why it is cheaper than a regular taxi or a car rental service. By becoming a member of the pool of ‘Uber’ cars, the drivers are also able to augment their gasoline expenses and make some business out of it. Well, this is my 2-cents worth on the subject. College students and those without a job can take advantage of this system for their benefit which at the same time provides service to others.
The only problem of ‘Uber’ is establishing its identity. Is it a semi-private or a public mode of transportation? What about licensing, insurance, registration and regulation for the security and safety of the riders? Is this mode of transportation illegal and unsafe? I guess ‘Uber’ needs to refine its policies so that it can meet or conform to government requirements in the different countries. Or vice versa, maybe government and taxi cab or car rental companies can learn from ‘Uber’ as they take advantage of technology to support their system and ensure safety.
Right now, there are around ten (more or less) countries that have issues with ‘Uber.’ It is only in the Philippines where government seems to have accepted it with open arms. Just like my friends who say they welcome it. They feel safer in an ‘Uber’ car compared to a registered taxi cab. Well, I’m sure not all taxi companies in this country have such reputation. There are still some that offer good and fair service. ‘Uber’ surely has shook them up and has challenged them to be more competitive in the field.
Last October, the Land Transportation Franchising and Regulatory Board (LTFRB) apprehended an ‘Uber’ driver in a sting operation. The car, which was an SUV, was fined P200,000.00 and impounded for up to three months.
‘Uber’ is said to have violated the Public Service Law or the Commonwealth Act 145, which requires public utility vehicles to secure a franchise from the regulatory board before it can operate.
‘Uber’ is a mobile app that allows commuters to book a ride with people who are willing to share their car with strangers. However, in the Philippines “ridesharing” is not done. You register with ‘Uber’ using your credit card. ‘Uber’ drivers don’t accept cash. You do not even need to give a tip. The transactions are made directly between ‘Uber’ and the passengers, thus making you feel safer and farther away from overcharging taxi drivers.
There are two kinds of Uber service. One is Uber X that uses regular sedans and Uber Black that uses SUVs. In Uber X, passengers are required to pay a minimum base pay of P40 and an additional of P5 per kilometer. Uber Black has the same base pay but with a higher additional rate per kilometer. Uber drivers earn from P50-P90 per ride. According to some friends who have used Uber, a trip from Greenhills to Makati is cheaper than the regular taxi rate.
The LTFRB, DOTC and Uber agreed that ensuring passenger safety remains the top priority. Thus, safety measures will include ‘Uber’s’ current practices of requiring passenger insurance to be provided by each of its partner drivers, as well as safety inspections to ensure the roadworthiness of their vehicles. The LTFRB also wants access to the identities of ‘Uber’ drivers for security reasons. By the way, an ‘Uber’ passenger is given a profile of the driver before the ride.
Now that Christmas is just around the corner, there are many taxicabs that refuse to take people to their destination. At 7 pm, they are already closing shop. Sanamagan! So, the tendency of the public (especially the younger generation who are smartphone users) is to call ‘Uber’ and ask for a car that will bring them home or to another location.
At the end of the day, one thing is for sure, ‘Uber’ has given birth to a new mode, a new trend in public transportation. This business model will definitely set a trend for other products in this generation. Its quite obvious, the founders of ‘Uber’ are just like the geniuses – Steve Jobs (Apple computer founder), Larry Page and Sergey Brin (Google founder) and Eduardo Luiz Saverin, Mark Zuckerberg, Dustin Moskovitz, Chris Hughes and Andrew McCollum (Facebook founders) and many more out there. They just make the world turn!