Uber might not be as simple as "there's an app for that." The car service smart phone application, which launched in Detroit in March, could shake up the transportation industry.
The app connects riders to existing chauffeur companies through the Uber interface. When customers request an Uber ride, they are are given the contact info of their driver and can track them via GPS on the Uber map. The app also takes care of paying the driver via credit card.
Customers may like the app's efficiency and innovation, but it's has caused controversy over pricing, technology, and taxi regulations.
Alex Southern and Ajay Kapoor, in a recent Techonomy article, explain:
The startup has faced a firestorm of backlash ranging from antiquated regulations (and accompanying lawsuits in cities including New York and San Francisco) to a baseless rape accusation in Washington, DC.
In other burgeoning markets, the response to Uber’s presence has been mixed, but there are indications that the tide may be shifting.
Uber received a cease-and-desist order in Boston because current legislation didn’t account for the use of a smartphone in commercial transactions. Uber appealed to the public, and an outpouring of support from Boston residents led to the state granting Uber an exception.
Uber's appearance in Detroit has been comparatively quiet, but Southern and Kapoor predict that Uber, or at least the ideas and technology it offers, could spur serious competition as it redefines transportation regulations.
In a city known as the birthplace of the automobile and hailed as a beacon for innovation in the early 20th century (the Silicon Valley of its day), Uber’s presence poses a greater threat to Detroit automakers than many realize.
