Uber Thesis

CHAPTER 1

INTRODUCTION

Rationale

In our transportation system today, commuting from one place to another has never been so easy because of how much stress it brings to commuters. Regarding to this are these three common problems in our transportation system: (1)traffic congestion which is the most prevalent transport in our country today, (2)longer time on commuting that is on par with congestion, people are spending an increasing amount of time commuting between their residence and workplace, (3)public transportation inadequacy during peak hours, crowdedness creates discomfort for users as the system copes with a temporary surge in demand.

With people finding it hard to travel from one place to another riding any public transportation such as, PUVs and taxis, they have been switching up to ride-sharing applications. In the past three years, people have been known to catch a ride with Uber. Launched on February 2014, Uber was founded by Travis Kalanick and Garret Camp at San Francisco back in 2009. Since then, Uber has become an international transportation network company, with operations at over than 58 countries including the Philippines. This transportation network company appeals not only to those who doesn’t want to take the public transportation but also a broad range of other groups including families, individuals who goes home late at night and etc.

An innovative blend of technology, transportation, and low-cost convenience, Transportation Network Company(TNC) appeal to the interests of all people with smart phone. This company operates similar to a taxi service, however they differentiate in that this TNC use online enabled platforms to connect riders to drivers using their own personal vehicle. Providing a service called ‘real-time ride-sharing,’ the user-friendly app operate with only one click, locating not only the location of the potential rider, but also the number of drivers nearby and the wait time for the closest driver. They also provide driver information in the method of contact in order to arrange the one-time shared rides. The payment system is simple- price is calculated with respect to speed and distance, and customers are billed directly, with receipts sent via email. Convenient and fast, this app remove stress from both driver and the rider, providing strong incentives for riders to switch from taxi service to ride-sharing and despite having negative feedbacks of this ride-booking application, the users are still numerous and still being patronized by the mass people.

This study aims to discuss how efficient and effective the Uber application is to people who are avoiding hassle trips using the public transportation and give awareness and information among its users.

This research includes the literary works of other people that has significant information needed for the study.

According to Nistal (2014), Uber is a Transportation Network Company developed to connect passenger and drivers through a smartphone application.         

        According to Rusell (2017), Uber has been aiming to strike an alliance with government as part of its launch, which makes sense since Uber’s model- using civilian vehicles for commercial purposes is still odds with many government despite the firm operating in Asia since 2014.

        According to Ortiga (2016), Uber has become useful especially in Manila because of a lot of commuters preferring Uber than taxi and jeepneys.Proving that people won’t need to buy a car if we they use Uber.

According to Cheney (2016),Uber is focused on building its business, which is has made the firm so ubiquitous nowadays. The company has expanded its mission from providing rides on demand to reinventing transportation as we know it. It is through its hyper focus on efficiency that Uber may have the most potential to benefit riders and drivers across the different countries where it operates.

        According to Villegas and Delos Reyes (2017), Uber has reduced recurring problems regarding the public transportation in the Philippines. Using technology, TNC’s have become helpful in providing convenient way of transportation to its users and because of this, users have preferred Uber over taxis for easier travel.

        According to Gaskell (2017), although that there has been a lot of disapproval against Uber, it also has a good effect on people. This firm have benefited many because it had given opportunity for more jobs particularly to those self-employed drivers. Therefore, before complaining against cons, we must first understand the benefits of its pros.

        According to Tulio (2017), many people are really in favour ofUber because it has played a big role in our lives particularly to those who need to go from one place to another in a specific time. It is a very convenient way of transportation because it is hassle free; shows the amount of fare ahead of time, very accessible, has nice drivers and offers much better ambiance of security. Due to the amount of its remarks among different riders, this transport network company continue to be more useful and relevant nowadays.

        According to Cupin (2017), over the last two years of Transport Network Company operation, Uber has increased and has grown for over more than 100,000 vehicles. This firm which offers and provides services to the mass people that is in need of easier access to transportation is also in conflict with LTFRB because in line with their growing number of partners is the growing number of its partners who operates without permits.This conflict has resulted into suspension of the Uber application, which provided them time to make solution due to the problem that gave them opportunity to providing better services.

        According to Mishra (2015), after the NSW council campaign that says ridesharing is no safer than hitchhiking, the choice could hardly find any evidence to prove that they’re true. UberX rides are more accessible and they arrive more quickly compared to the taxis. In spite of the benefits that passengers get from UberX,carrying passengers is still illegal for it.

        According to ABS-CBN News (2017), since the Land transportation Franchising amd Regulatory Board (LTFRB) is ordering Uber to deactivate some of its drivers, even celebrities and other people are giving critisms& reactions. Reaction to the order on social media has been feisty, others criticized the agency for the backlog and inconvenience of public transportation.

        According to Marasigan (2015), the culture of ridesharing, or carpooling, is common in many parts of the world, mostly in the west. But, in the Philippines, the concept is relatively new. Many car owner are considering the prospect because they could offset the cost and use the money they save for their leisure. The manager of Uber, Lawrence Cua, said that Filipinos are open to the idea of ridesharing. Not only do this TNC help save costs to the consumers, it also helps commuters be more productive. They added that this app-based, ride-hailing company give taxi operators and drivers the needed changes for them to improve their services.

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