This is hardly a new question but the debate is still on-going. So, Peritum Service are here to clear all your confusion. With one side weighing more than the other in the debate.
And we all know the winning argument – it’s a platform business.
But why is it not a taxi business? Because it does not own any taxis? Is it a mandate to run a taxi business?
What if I were to outsource a part of my business, does that take the ownership of the business from me.
If Uber is just a platform to connect drivers with riders? Does that mean all Uber drivers are entrepreneurs?
Uber did start as a platform to connect riders with drivers. But with time they have introduced a plethora of rules and regulations for both the drivers and riders.
Uber is regulating the operations of drivers from how much they can charge a customer to putting a cap on how much they can work in a day.
Last year Uber announced the change in its policy to ban riders with low scores.
A taxi business sells a ‘journey’ to the customer, so does Uber. A Taxi company regulates the prices, so does Uber. A taxi company regulates the cost of services, so does Uber. A taxi company has rules of conduct for their employee or service providers, so does Uber. A taxi company can own a car or give drivers a choice to use their own vehicles for an added benefit. Uber does the latter.
In addition to running the business as a taxi, Uber provides service management through app which is being done by many other service based businesses. The app makes it easier and convenient for riders and drivers to connect.
But if a rider does not have a choice of which driver to select, then, is it really just an app that connects the two?
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