Risk & Business Magazine McFarlan Rowlands Fall 2016 | Page 26

THE STORY OF UBER

The Story Of Uber
How It Might Affect Your Business
“SURVIVAL,
IN BUSINESS
ESPECIALLY, IS
SOMETIMES A
MATTER OF HOW
WELL A COMPANY
IS ABLE TO ADAPT
THEIR PRACTICES
TO THE CURRENT
LANDSCAPE.”
26

|

FALL 2016

T

here are two inevitable
conclusions that come from
the rapid technological
development that we are
currently experiencing. The
first is that the economy (and society)
will grow. Systems and economic
models that are in place will improve
and incorporate new technologies to
help make our lives easier. The second
is that industries operating under their
current models will have to either adapt
to these new technologies or perish. The
second conclusion, obviously, is the most
interesting and relevant to businesses
currently operating in the market. Uber is
an interesting case study of this conclusion
in action, though it has been seen in many

other industries as well.
Uber, and other platforms like it (e.g. Lyft),
are based on mobile phone applications.
Anyone can sign up to be a driver and,
once approved, they will be put into the
system during their available hours. They
use their car essentially as a taxi. When
people need a ride, they go to the Uber app,
find someone local offering these services,
and then they will accept and come pick
you up, completing the transaction like a
traditional taxi would. Except, that is, for
the fact that they have to pay by credit
card through the app. This is Uber’s way of
ensuring payment. People receiving rides
will pay Uber directly, and then Uber will
pay the drivers. This is, very different from