THE UBERIZATION

“Uberization” is a term that first gained popularity in France. It describes how we are moving towards an economy
based on services rather than a so-called production economy. What this means is that our business models are
changing, and at the same time we’re going through sociological changes. What are these sociological changes?
Take for example a 20-25 year-old student. Twenty years ago, in the 80s or 90s, this student would have wanted to
buy a car to go to Deauville for the weekend, go on vacation or just a drive. If we transpose this situation to today, this
student would not buy a car but would rather just like to use one occasionally. We call this "servitization", that is,
products are designed to provide a service.
The same is true for a hotel room owned by a real estate group. Does the latter need to own the room, or can it merely
make said room available? Such is the case with Airbnb, whose aim was not to own rooms but to make them
available. Finally, we can also mention transportation again, with the electric car which today is rented and subject to
non-sale contracts for use.
Uberization has been made possible by the development of digital technologies developed in the 20th and 21st
centuries. Business organizations such as Uber, Grab, Lyft and Airbnb enable potential customers to be put into direct
contact with potential providers of a service. The phenomenon of uberization is characterized by the elimination or
quasi-elimination of middle man’s roles.
Uberized business formats are characterized by the following elements:
• The use of a digitalized platform enabling peer-to-peer, or quasi-peer to peer transactions.
• Minimizing the distance between the provider and customer of a service.
• The use of a rating system for the quality of the service provided by a provider.
What we call "servitization" or “uberization” allows anyone to be a provider of services. Today everybody can rent-
out a car, make a room available in their apartment, or contribute to a Wikipedia article. Everyone has access to online
platforms where one can watch, download or upload videos. “Servitization" and the sharing economy are changing our
relationship to ownership. Products today are all about the service they provide.
In this new framework, service providers are mainly seen as freelancers with minimal contracts and affiliation with the
organization. Though some may embrace such arrangements as flexible work conditions, others may interpret it as a
form of new-age exploitation.
The most iconic example of such companies is—of course—the ride hailing service, Uber, which has made its way to
over 60 countries since its inception in 2009, while adding the verb “uberize" to the English language.
One criticism against the uberization movement was that it would always remain limited to low-skilled services.
However, we are now witnessing the uberization of some extremely high-skilled professions including healthcare
services.
There is still much debate around the benefits and risks of this way of working. Working more flexibly on a job-by-job
basis is touted by some as the ultimate in employment and provides a lot of freedom for those that desire it. However,
part-time workers do not have the same benefits as full-time employees do, leaving them without the job security and
peace of mind that nine-to-fivers enjoy. Furthermore, large companies are accused of profiting from worker
instability.
Uberization has also raised concerns over government regulations and taxation, insofar as the formalised application
of the sharing economy has led to disputes over the extent to which the provider of services via an uberised platform
should be held accountable to corporate regulations and tax obligations.