The Impact of Uber on Traditional Taxi Companies

Since the advent of Uber, taxi companies affected negatively. Their work reduced because most
of the customers started using Uber because they are considering Uber more comfortable. As a
result of that mobility, urban transportation has won another landscape. However, that
establishment affected positively everybody except taxi companies.

To begin with, the result of existence uber taxi companies included hard competition. Customers’
preferences started to be considered. Therefore, taxi establishments started to take some actions
to influence customers. Such as they improved their cars’ quality and features. They started to use
modern and comfortable cars, also they started to serve water and snacks to increase service
quality. As a result of that, customers are affected positively by that competition because their
preference is the most significant base to continue their job.

Secondly, the employment system is changed with Uber. Furthermore, most drivers do not need a
company to work anymore because thanks to the Uber people can work independently. As a
result of that, labor concern is not a problem anymore. For instance, If a person is not hired by
companies, that person can start their work or a taxi driver is fired from a taxi company that
individual can work with their car in Uber.

Moreover, beyond these effects, taxi companies are affected positively in one way too. It is
mobility, these establishments have started technological innovations and service evolution.
They have taken those actions to compete with Uber because Uber provides mobility with a
mobile app. It is really handy to use. However, traditional taxi companies had worked with phone
calls or encounters in the street. It is not practical for customers, they are wasting time and energy
to find a taxi. Therefore, they started to prefer Uber. As a result of that, a mobile app for
calling taxi is developed by taxi companies. Thus, they can be included competition. Also, they
improved their service quality.

To sum up, Uber has provided positive effects for customers and service quality. Another
alternative for transportation included with Uber. Its mobility is significant evaluation for
individuals and companies because its mobility affected different industry beside of taxi
companies. Also, competition is increased between taxi companies and Uber. Thus, it ensured
happy customers.