Negative Effects Of Uber

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This research task takes a look at if Uber has had a negative effect or positive effect on South Africa’s economic growth. Uber has been in operation globally since 2011. Uber released its service in Johannesburg, South Africa on August 8th, 2013. Uber has always looked for openings in the transport and service industries in countries around the globe. Uber has always looked into expanding into Africa, though they have always been met with resistance more recently than when they first expanded into Africa. According to Jambu Palaniappan, Johannesburg offered a unique opportunity to expand and offered a gap in the market for a mean of alternative transport because of the lack of proper public transport (Wilson, 2013). Regional General Manager…show more content…
Uber is most likely tapping into or inducing a new demand of customers that previously used their personal vehicles to providing an apparently safer and more reliable means of transport that is more attractive than driving. Uber is demanded because of their consistency in shorter waiting times and travel times, rendering it more reliable than traditional metered taxis (Dube,…show more content…
Uber allows for their customers to see the cost beforehand through a quoting system that allows the user to see the average cost that the trip will entail. What goes in hand with security, is that Uber is a cashless system, meaning that the cast of the route is taken directly from the customer’s bank account, allowing for cashless transactions and reducing the need for passengers to carry around cash to make payments to the driver, as well as reducing the unfair transactions with the driver, pricing the passenger higher rates; allowing for a higher security of payment within South Africa (Dube, 2015). With Uber and their expansion plan of looking at each city individually has allowed for local insurance company, Discovery, to partner with Uber; allowing for both Uber and Discovery to channel clients towards both companies, enabling Uber to squeeze into new markets and get new customers, affecting the local metered taxi competition market (Dube,

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