Do you know what "uberization" is?

A "disruptive innovation" occurs when a new technology radically changes the traditional patterns of development of a given market or business activity. It is safe to say that among the first disruptive innovations that man developed are agriculture and the domestication of animals that came to replace the collection of wild plants and the hunting of wild animals.

Disruptive innovations have now appeared in almost all areas of economic activity. Entrepreneurs with fresh ideas and ingenious computing platforms have created formulas to use the idle capacity in certain sectors and divert it with amazing simplicity towards satisfying the needs of the demanders of goods and services.

Today we will talk about UBER, the largest taxi company in the world that does not own a single vehicle, and its business model. In future installments we will analyze other notable cases of companies that are revolutionizing tourism, logistics, medicine and telecommunications, among other sectors of economic activity.

Uber was born as a brilliant idea of ​​the North American Travis Kalanick and the Canadian Garrett Camp who, with admirable common sense, developed a mobile application that allows users to contract transportation services offered by drivers authorized by the company by telephone.

In this way, anyone who has a smartphone and a credit card can register as a user and enjoy Uber services worldwide. On the other hand, anyone who has a driver's license and owns a vehicle in good condition will be able to opt for his affiliation as an Uber driver.

The advantages that the system offers users are interesting when compared to the Uber service vis-a-vis that of traditional taxis:

  1. Lower rate.
  2. Quick availability.
  3. Automatic payment system by means of a pre-registered credit card, without the use of cash and without tips.
  4. The chosen route is fixed on the map by radio navigation (GPS).
  5. The quality and efficiency of the service are subject to permanent evaluation by users.

The advantages that Uber offers drivers are the following:

  1. Affiliated drivers are not subject to schedules and can design their work plan according to their convenience.
  2. On average, an Uber driver earns $19 per hour and, if he works full-time, his annual income would average $40,000 net after expenses and taxes.
  3. They can operate with their own, rented or leased vehicles.
  4. They enjoy the status of independent contractors, that is, they do not have bosses.

The requirements that Uber requires of its drivers to operate in its basic category (Uber X) are the following:

  1. Be at least 21 years old.
  2. A minimum of three years of experience in driving private vehicles.
  3. Driving a owned, rented or leased vehicle that meets the following characteristics required by Uber.
    • 4-door sedan with capacity for 4 or more passengers.
    • Model no more than 15 years of age.
    • Plates or registration of the state where it will operate.
    • No external markings, taxi decoration or being salvaged vehicles.
    • Possess the automobile registration without the need for it to appear in the name of the applicant.
    • Pass the Uber inspection.
  4. Possess an insurance policy from the state where the vehicle will operate.
  5. Driver's license from the state where the vehicle will operate.
  6. Be registered in the “Social Security”.
  7. Have a clean driving record.
  8. Pass the criminal background check.

The success of Uber's business model has been such that the company has decided to venture into related activities such as the rental of limousines, helicopters and yachts; food distribution from retailers to households; and vehicle leasing and rental. In fact, the term "uberization" is already part of the lexicon of the actors of the new technological revolution.

The modern world is leaving behind the times when brave miners risked their lives in precarious coal mines or when thousands of women were mercilessly exploited in textile maquila activities. Now, disruptive activities have come to replace exhausted employment models with more rational forms and in line with the demands of our millennial generation.

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