Unless you’ve been living in a vacuum — or say, flyover country — you will have heard of the ride-sharing service called Uber. Just in case you haven’t, Uber is an app-based company started in 2009 that’s essentially revolutionizing the taxi cab industry.
The way it works is after downloading the app and connecting it to one of your credit cards, you can request rides anywhere the service is available. In turn, it sends the request to the company, which then sends the request to its drivers in the area and connects you to an ?available one.
So what’s so special about an app-based taxi service? In short, it’s the fact that it’s rapidly become much more. Uber has expanded at a breakneck speed worldwide. And at this point, I believe it’ll be a service every person with a smartphone will be using in the coming years. Think Google or Amazon.
To understand the scope, keep in mind the app started just six years ago in San Francisco. Today, the company services cities in 54 ?countries — from Bloomington to Berlin and beyond.
The company is obviously serious about continuing to expand its reach, so much so that it has faced fierce opposition from city governments in its expansion process.
The reason? Its ?success.
One of the most innovative aspects of Uber is that it fundamentally disrupted a monopolized industry.
Taxi medallions — the licenses that allow taxis to operate in a city — can fetch up to $1 million in auctions.
Thus, these medallions create cartels in cities where prices can be as high and service as poor as the taxi companies would like because they face no competition.
Uber and ride-sharing in general has uprooted this system by allowing anyone with a car, a license, insurance and a background check to become a driver and pick up anyone who wants ?a ride.
This, in turn, has gutted the value of medallions and mobilized taxi companies to fiercely lobby cities to ban the app and stop the free market.
But Uber isn’t backing off. Instead, it’s playing hardball. Last fall, Uber brought on board one of President Obama’s closest advisers and the architect of his 2008 race for president, David Plouffe.
Plouffe currently serves as Uber’s senior vice president for policy and strategy.
Not only is he charged with running a massive public relations campaign to introduce Uber to the rest of the world, but he’s also revamping the company’s internal culture and simultaneously crafting policy to convince cities to allow the service.
This is all a big a deal. And yes, the company isn’t perfect, but it’s rapidly changing.
If Plouffe can get a relatively little-known senator to the White House, it has to make you wonder what he’ll do for a company valued at $44 billion with a worldwide network and the potential to reinvent how people move around, anywhere.
edsalas@indiana.edu
