Comparison between Uber and Taxi Research Assignment

Comparison between Uber and Taxi
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Comparison between Uber and Taxi
What is it like to use either taxi or Uber? This question lingers in customer's mind whenever it comes to rush hour in a need for transportation services either by Uber or taxi. Customers with experience in both services reveal both similarities and differences. Thus, the introduction of both taxi and Uber in transportation network companies has ensured improved services to consumers due to the available vehicles for hire. However, the two transportation service entities differ in their individual models though they seem to offer almost identical services.
In order to clearly comprehend their comparisons and contrasts, it is essential to understand their separate operations. For instance, taxi normally offered a contract by the local government to operate in a town. A customer usually makes a call to the company and requests a taxi where and when to pick up the person. After the ride, the driver is paid directly. Under such circumstances, the customer is in a position to bargain on reasonable price and feels not overcharged by the driver. The driver then earns some percentage of the paid service for the day. On the other hand, Uber service is where a company operates in a city. People then volunteer to work for the Uber at their free time. The driver will normally flag when they are on or off duty (Yawn, 2016).
A customer who is in need of Uber uses the Uber app to signal a need for a ride and the app matches them with the driver. The driver then evaluates the profile of the customer and decides to take up the service. The passenger pays directly through an electronic system to the company. Then a portion is sent to the driver for the service of the day. The advantage of using Uber is the transparent transaction that is exhibited through direct payment using the electronic system (Yawn, 2016).
Taxi and Uber both have regular inspections. Initially, taxi companies were inspected at a charge fee of $ 75 by the city and their inspections were to be conducted prior to the vehicle usage. The inspections are still conducted though not by the city. Both the Uber and taxi are inspected by the third party auto shop that is recommended by the city government with a charge fee, not more than $ 125 or less than $ 75. However, the striking difference is that Uber service operations commence immediately within 15-day inspection (Yawn, 2016).
Secondly, both Uber and taxis have the fee payments revolutionized. Uber usually has an app where consumers quote their fare prices and then pay with credit card numbers. Though taxi payment uses meter counting dollars and cents per mile, there is a change whereby the driver and customer agree on a price to a given destination in verbal terms. The ordinance technique of charging the fees was abused by the Uber who normally surged prices during high traffic occasions (Yawn, 2016). However, the company has to notify the customer of the surge pricing prior to the service. In addition to the fees, both entities operate on valid business permits of $ 75 that are remitted annually. Besides, the drivers usually pay application fee of $ 25. However, the Uber‘s annual fee is $ 5,000 paid to the city government in relation to the number of cars that it employs. On the same note, all the drivers normally have updated insurance. Such insurance includes total liability, property damage, and personal injury insurance. In addition to personal liabili...