Taxi Industry: why E-Hail Apps Outpace Taxi Services

It is obvious that every good thing has a minimal bad thing. Likewise, Uber and other E-Hail apps have also some of the disadvantages and that is somehow helpful or inspiration as well to make this transportation technology more worthful and revised. After solving disadvantages of it, we can make this technology more useful and advanced. Now let’s know, what are the drawbacks present on Uber and other E-Hail Apps?

Drawbacks or cons:

  1. Although many customers get advantage of greater access to safer, more stylish, transportation, but “Surge Pricing” for UBER, or “Primetime Pricing” for its main competitor, Lyft, is controversial and a major annoyance for most customers. Actually “Surge Pricing” is a method of pricing in the free market which involves the raising or lowering of prices. So the price for UBER services depends on the intensity of demand, and it can be doubled or tripled and these fare hikes affects during periods of high demand for cars like during rush hours, dates of concert events, during rain and snow storms etc.
  2. With this easy access of cars at cheaper prices, customers get into the habit of taking a car for very short distances instead of walking.
  3. Lower prices directly or indirectly impacts on driver’s earnings. Similarly with the continued intake of new drivers by UBER and its competitors, the driver’s average earnings will be pushed downward. That implies that driver need to work for longer hours to earn an income as compared to what they would have earned a few years ago.
  4. Although it provides the cheapest service but give stress to the drivers. Not only this, Uber and E-hail services are directly competing with the existing taxi and limousine or car services for both customers and drivers. This lead to the drop in taxi medallion and black car prices in major cities like New York. Obviously it is good for drivers and customers but very harmful for the traditional taxi and car service groups.
  5. The use of this technology has also introduced the new rules on pricing and decision-making options for both drivers and passengers. Not only this, it has also reduces the market share of traditional taxi services and lowered the overall profits of drivers.

These are the drawbacks of it however we have to welcome this technology and attempt special techniques to minimize its cons.