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week 9 [20-26.05.2019] Uberisation - chance for economic development or a trap of small entrepreneurs


Uberisation - chance for economic development or a trap of small entrepreneurs

               Over the last few years, a new business model has been created. The name comes from the uber platform. The main tool is a smartphone and a network. The model works on the basis of digital mobile platforms, providing services and products. This model is characterized by mobility, optionality and high usability.  It is mainly used in services that can be offered by people who have experience with some skills or resources such as a car, leisure time or gardening skills.
               Uberisation is a strongly developing trend. The advantages are certainly the development of entrepreneurship and the availability of services. Economists predict the continuation of the development of a business-type. They mention that with the development it will cause positive and negative effects.
               I briefly presented the term uberisation. Now I would like to share my insights into this matter. Generally, the idea is very good. Ease of reaching the customer is something wonderful. However, in practice, the situation is not so good in my opinion. I have the impression that people doing business with companies such as lime, uber eats or bolts are quite heavily used. They offer their time and resources to these companies. In practice, a person who wants to cooperate with, for example, lime must start a business activity or cooperation with a partner. It generates costs at the start which are quite high compared to earnings. Such work involves charging electric scooters. This means that the company has powerful savings resulting from the lack of infrastructure to load its scooters. The problem is that a person willing to cooperate must sign a comprehensive contract and take responsibility, in my opinion, for not an adequate fee. That's why this solution seems to me perfect but only from the company's point of view.
Questions:
1.     Do you think that this type of activity should be better regulated by the government?
2.      Have you ever used this type of application as a service provider, if yes share your experience?
3.      What are the advantages and disadvantages of uberisation in your opinion?
Sources: https://www.forbes.pl/gospodarka/czym-jest-i-dokad-prowadzi-uberyzacja/xmnr8b5

Comments

Bartosz Barnat said…
Well In my opinion when it comes to some type of company like the one that you can lend electric scooter from should make some regulations when u won't treat their stuff with care u simply have to pay a fine. When there will be someting like that people won't act stupid and break stuff so easly, they will think frist before doing something.

I haven't used this type of service provider.

The problem with uberisation is with organizing everything as it supposed to be. Again when we look into scooter lending company this idea is really great but they make city uglier just because they are laying everythere where you look.
I think uber drivers should pay taxes and earn some more money. I like uber and I do not want it to change. I think taxis should join uber.

I used this type of application only as a client, so I can't say too much about work as a service provider. Each person is different and is curious to talk with.

The advantages are lower costs and easy availability. Disadvantages are the lack of taxes.
Anton Medvediev said…
1. Do you think that this type of activity should be better regulated by the government?
yes, but regulate in a good way, but they want to ban because u need to thing to regulate and they like old stuff
2. Have you ever used this type of application as a service provider, if yes share your experience?
Yes, it’s very UX and i like how easy can be thing like this
3. What are the advantages and disadvantages of uberisation in your opinion?
saving time it’s the biggest advantage, time is the most expensive resource in our life
Anton Medvediev said…
In 2017, the reported net profit of Uber Polska, which is the basis for taxation, amounted to PLN 8.8 million, of which the company paid PLN 1.675 million in taxes in Poland. This is the largest tax paid by all corporations operating in the industry, "writes the chairman of the Federation of Polish Entrepreneurs, Marek Kowalski, quoted in the statement.

source : "https://www.xiaomist.com/2019/02/the-government-wants-uber-to-pay-taxes.html"

funny moment that normal taxi company steal money from Poland more then uber
they just take a client steal 80 zl from him and officially write that cost was a 20 zl
1. No, absolutely no. People and entrepreneurs should absolutely free to run their business. If someone doesn’t like such services because of too high fees, then no one forces him to do so. I hate those taxi drivers who want to lower everyone to their level instead of eradicating regulations which put them into worse situation. If you think that some solution is perfect but only for the company, you don’t have to cooperate with it. Competition and free market are essential to build prosperity.

2. No, I haven’t.

3. In my opinion there are no disadvantages. Such services are very convenient, and I don’t see any reason for not to use them. If other companies can’t withstand such competition, they should collapse. The only problem are all those regulations and taxes which make it harder to perform any type of activity. In a normal, capitalist, free market there wouldn’t be any of those discussions and artificial problems.
Maciej Sadoś said…
I think that somehow it should be regulated by the government especially when we don’t have a free market. However regulations are coming so we will see how it will look like then.

I’ve never used any service of that kind but I definitely have to try those electric scooters just to get to know how it is to drive one :-) However, I don’t like that these scooters are standing and laying everywhere now. They are littering the city a bit...

In my opinion on the one hand it gives our economy some freedom but on the other hand we have to be fair with others. There is some law and even if it’s not ideal we should obey it. But generally speaking that kind of services are truly beneficial for consumers as we can have everything at our fingertips.
I believe that wherever there is money, there should be a law adapted by the government. A corporation like Uber, of course, obeys the law, but the law should be more modern. Especially that more and more companies with a similar business model are entering the market.

Very often, due to commuting from home to the subway. Such an application makes life easier for people who often have difficult access to public transport. So instead of driving your own car around the city, I would like to invite uber.

I think that the advantage is the ease of getting a job often without excessive skills. Because of this everyone has access to easy work which favors real development. The downside of this can actually be the decline in the quality of services provided.
I have heard about this new business model. It actually is really innovative, from the very beginning. When everyone can serve as a sort of node to perform tasks, and many nodes together will result in production, or service. The very concept of voluntary participation may not be completely new, but it fits well as a part of this schema.

In my opinion, it is very effective, and the future of many service driven startups and application lies in this uberization. It has proven that the quality of service delivered do not depend on solid corporate structure, and many othet traits we are so familiar with when dealing with old fashion corporations.
I try not to judge but from my experience: I live in Wawer. I've used taxi once, when I was 18. I paid 150 zł for ride from city center to my house. Then I were not using taxi for years. Now, when uber and bolt became extra popular I've also started using bolt. I pay 20-30 zł for ride to my house. I do not believe that taxi drivers MUST take those 130 zł more - I know that they are paying taxes and licences but still, that six times more than uber/bolt ! Also when you are ordering taxi, you know nothing about a person that will drive. When you are using mobile app, you see this person rating and you can cancel it if you think it's too low.
Anna Koca said…
1. Do you think that this type of activity should be better regulated by the government?
Now we see Polish legislation trying to put Uber under their thumb and in my opinion it would be counter-beneficial to us, all users. We will come back to sneaky taxi drivers who will take you for a ride. Literally and metaphorically.

2. Have you ever used this type of application as a service provider, if yes share your experience?
It was always OK. I think it is fair-priced, it attracts a lot of customers, bot also drivers. So where's the problem?

3. What are the advantages and disadvantages of uberisation in your opinion?
Advantages - like I said, freedom of choice, lower prices for users, demonopolization of rotten taxi industry. Disadvantages - I guess only for taxi drivers.
I am big fan and a regular customer of Uber or Bolt. I think that these platforms shouldn’t be more regulated by government. The situation is good as it is. Of course, I’m saying it only from a point of view of a customer. As I said in the beginning, I use applications like Uber on a daily basis and I love it. It is way cheaper then regular Taxi it is usually faster and all it takes to order an Uber is as much as 3 taps on a smartphone. In my opinion there are a lot of advantages of uberisation and not that many disadvantages.
1. Do you think that this type of activity should be better regulated by the government?

No, I don’t think that regulations are a good solution. I mean.. it’s electric scooter industry, we don’t need government to write special laws especially for them.

2. Have you ever used this type of application as a service provider, if yes share your experience?

I have never used any of these apps as a service provider, many times as a customer, but never as a service provider.

3. What are the advantages and disadvantages of uberisation in your opinion?

The lover cost and availability are the biggest advantages in my opinion. I don’t see any big disadvantages, there are a lot of marginal ones, but any really big.
This system helps people find a way to make money. For example, my friend drives a taxi. It really pays off, and he gets good money, but at the same time he has to control his time. If you correctly approach this, then everything is not so bad. Before concluding a contract, you should carefully read all clauses of the contract. After all, everyone knows that you can harm yourself. The contract with a taxi states that it all depends on how often you work. If you stop driving a taxi, you don’t get paid for it. It may be worthwhile to introduce some laws that will regulate it. But in the case of a taxi, I do not see the problem. The only problem for other companies, taxis that exist in this city. Greater competition, but it means improving the quality of services. In general, everything does not look very bad.
1. Do you think that this type of activity should be better regulated by the government?
The idea of Uber is to ensure that the client pays less and can get to the destination. If the drivers of Uber pay taxes, it will be unprofitable for them to carry customers. And it will be unprofitable for customers to use Uber.
2. Have you ever used this type of application as a service provider, if yes share your experience?
Yes, of course. Well, you enter the desired address and expect that the driver nearby will take the order. Sometimes surprised by the estimates of drivers. It would be nice to write the reason for the low score, and not just put 4 instead of 5.
3. What are the advantages and disadvantages of uberisation in your opinion?
It is very convenient. First, you do not need to wait for the car for 20 minutes, as in a taxi. The app tracks cars nearby. Well, cheap prices, Uber costs me two times cheaper than a taxi.
Yana Lytvynenko said…
I am not well acquainted with the business of this kind, but I heard before that Uber is a company that cheats on legislation and taxes with cunning tricks in many countries around the world. But it seems to me that for so long they will not be able to circumvent the laws and sooner or later the golden mean between the business of this type and the law will be found.
Yes, I often use this type of service, as it is simple, fast and cheap. I order a taxi, food, and also rent scooters and cars.
As for me, a regular user, I see only advantages. That is why I prefer them, and not other companies.
1. In my opinion type of activity should not be regulated by the government. No way. Why? Because, for me (and I think not only for me) uber is a very good alternative to taxis for many reason - is cheaper, have an very nice and convenient app, and you have price for ride. If government put taxes and regulations for uber, this would be tragic ending. It will be more expensive. They should not interfere.

2. I have used this type of application as a customer, not service provider. As a customer I think this is excellent and convenient option.

3. I think that is only one disadvantage - for taxi drivers. They are angry that customers "steal" services. But we have a lot of advantages of uberisation in my opinion - lower prices, application.
As with every trend, there are positive and negative effects. Positive is that uberisation helps new ideas reach reality and really get launched. In previous years people without money and resources simply could not afford that. But from the other side these businesses really require regulation, and new entrepreneurs need to learn the basics of business and economics.
Uber-like services should be regulated in the same way like other businesses. The law is ought to act the same regardless of inside policies and structures of any company.

I use Uber on my daily basis. In comparison to the classic taxi it turns out to be more convenient and transparent. I know price and driver arrival time before ride. In the case of taxi until the end of taxi I’m praying for adequate bill.

The main advantage is the price and fact that those services are oriented towards client as it is supposed to be and it’s not in taxis, which are dominated by worker unions. On the other hand, they are a real threat for smaller businesses.
Illia Lukisha said…
1. Do you think that this type of activity should be better regulated by the government?

If you're talking about this service and final executor, I can agree with you. But no-one is pushing people to sign unfair contracts, they always have a choice. So for example if you think that lime is unfair, just don't sign contract. What is the problem? Someone who think that deal worth it will sign, or proposition will become better to satisfy executor.

2. Have you ever used this type of application as a service provider, if yes share your experience?

No I didn't. But I "know people that know people" who actually were working for both uber and bolt, and they earned enough and even more than other people with more complicated jobs that require qualification.

3. What are the advantages and disadvantages of uberisation in your opinion?

I think that know inventions are hiding true costs of such services, but we just need give a little time for new industry to find right way to operate and become profitable.
Peter Clemenza said…
1. Do you think that this type of activity should be better regulated by the government?
No, the less goverment is involved the better

2. Have you ever used this type of application as a service provider, if yes share your experience?
No, however that sounds like a good tool for freelancers

3. What are the advantages and disadvantages of uberisation in your opinion?
Fighting with monopoly, and cons - percent of gains goes to app provider

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