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The [[New York City Taxi and Limousine Commission]] has discouraged drivers from participating in Uber, resulting in suspension of its hackney service in October 2012.<ref>[http://www.engadget.com/2012/10/16/uber-shuts-down-new-york-city-taxi-beta Uber shuts down New York City taxi beta, may see light at the end of the (Lincoln) tunnel in February (update: TLC responds) - Engadget<!-- Bot generated title -->]</ref> When [[Hurricane Sandy]] hit New York later that month, Uber drew criticism for doubling prices as part of its "surge pricing" system.<ref>[http://www.huffingtonpost.com/2012/10/31/uber-new-york-driver-pay_n_2051971.html?ncid=edlinkusaolp00000003 Uber Doubles New York Driver Pay To Get More Vehicles On The Road (And Eats The Cost) (UPDATE)<!-- Bot generated title -->]</ref> (Uber ultimately waived its fees and passed on all of the fares to its drivers, and defended its pricing by noting that it tripled the number of vehicles available.)
The [[New York City Taxi and Limousine Commission]] has discouraged drivers from participating in Uber, resulting in suspension of its hackney service in October 2012.<ref>[http://www.engadget.com/2012/10/16/uber-shuts-down-new-york-city-taxi-beta Uber shuts down New York City taxi beta, may see light at the end of the (Lincoln) tunnel in February (update: TLC responds) - Engadget<!-- Bot generated title -->]</ref> When [[Hurricane Sandy]] hit New York later that month, Uber drew criticism for doubling prices as part of its "surge pricing" system.<ref>[http://www.huffingtonpost.com/2012/10/31/uber-new-york-driver-pay_n_2051971.html?ncid=edlinkusaolp00000003 Uber Doubles New York Driver Pay To Get More Vehicles On The Road (And Eats The Cost) (UPDATE)<!-- Bot generated title -->]</ref> (Uber ultimately waived its fees and passed on all of the fares to its drivers, and defended its pricing by noting that it tripled the number of vehicles available.)


On November 22, 2012, Uber announced that it was exiting a "Secret Uber" stage in [[Vancouver]] and raising its rates to $75 per hour.<ref>{{cite news|url:http://www.techvibes.com/blog/uber-to-raise-minimum-charge-for-a-ride-to-75-ubervanlove-2012-11-22|title=Uber to Raise Minimum Charge for a Ride to $75|publisher=Techvibes|date=November 22, 2012|accessdate=December 12, 2012}}</ref> Uber's problems with local regulations were widely known in the local business community for months before the announcement. A September article in [Business In Vancouver] reported that Uber was dodging phone calls from provincial regulators seeking information about driver credentials, insurance & business licenses. <ref>{{cite news|url:http://www.biv.com/article/20120918/BIV0112/309189915/-1/BIV/ride-for-hire-alternative-enters-market|title=Ride-for-hire alternative enters market|publisher=Business In Vancouver|date=Sep 18, 2012|accessdate=December 12, 2012}}</re> As of December, six months after starting operations in Vancouver, Uber had not yet applied for a license to operate a taxi or limousine dispatch service in the city.<ref>{{cite news|url=http://www.biv.com/article/20121204/BIV0118/312049911/black-sedan-service-hits-regulatory-speedbump|title=Black sedan service hits regulatory speedbump|publisher=Business In Vancouver|date=Dec 4, 2012|accessdate=December 5,2012}}</ref>
On November 22, 2012, Uber announced that it was exiting the "Secret Uber" stage in [[Vancouver]] and raising its rates to $75 per hour.<ref>{{cite news|url:http://www.techvibes.com/blog/uber-to-raise-minimum-charge-for-a-ride-to-75-ubervanlove-2012-11-22|title=Uber to Raise Minimum Charge for a Ride to $75|publisher=Techvibes|date=November 22, 2012|accessdate=December 12, 2012}}</ref> Uber's problems with local regulations were widely known in the local business community after a September article in the business press reported that the company was dodging phone calls from provincial regulators seeking information about driver credentials, insurance & business licenses. <ref>{{cite news|url:http://www.biv.com/article/20120918/BIV0112/309189915/-1/BIV/ride-for-hire-alternative-enters-market|title=Ride-for-hire alternative enters market|publisher=Business In Vancouver|date=Sep 18, 2012|accessdate=December 12, 2012}}</ref> As of December, six months after starting operations in Vancouver, Uber had not yet applied for a license to operate a taxi or limousine dispatch service in the city.<ref>{{cite news|url=http://www.biv.com/article/20121204/BIV0118/312049911/black-sedan-service-hits-regulatory-speedbump|title=Black sedan service hits regulatory speedbump|publisher=Business In Vancouver|date=Dec 4, 2012|accessdate=December 5,2012}}</ref>


On December 05, 2012, officials at the City of Toronto announced that Uber was being charged with "25 municipal licencing offences, including operation of an unlicensed taxi brokerage and unlicensed limo service".<ref>{{cite news|url=http://www.thestar.com/news/gta/article/1298266--uber-taxi-charged-with-licensing-offences|title=Taxi app company Uber charged with licensing offences|publisher=Toronto Star|date=December 05, 2012|accessdate=December 05, 2012}}</ref> The City officials said they had met with Uber representatives "in the spring" and advised that the company would have to comply with local regulations. Rival taxi dispatch apps had heeded those warnings and obtained licenses so, by October 2012, a local paper could call Uber "the last such app to attempt to operate in Toronto in rogue fashion."<ref>{{cite news|url=http://www.torontosun.com/2012/10/18/uber-a-lone-rogue-in-toronto|title=Uber: A Lone Rogue in Toronto|publisher=Toronto Sun|date=October 18, 2012|accessdate=December 5, 2012}}</ref>
On December 05, 2012, officials at the City of Toronto announced that Uber was being charged with "25 municipal licencing offences, including operation of an unlicensed taxi brokerage and unlicensed limo service".<ref>{{cite news|url=http://www.thestar.com/news/gta/article/1298266--uber-taxi-charged-with-licensing-offences|title=Taxi app company Uber charged with licensing offences|publisher=Toronto Star|date=December 05, 2012|accessdate=December 05, 2012}}</ref> The City officials said they had met with Uber representatives "in the spring" and advised that the company would have to comply with local regulations. Rival taxi dispatch apps had heeded those warnings and obtained licenses so, by October 2012, a local paper could call Uber "the last such app to attempt to operate in Toronto in rogue fashion."<ref>{{cite news|url=http://www.torontosun.com/2012/10/18/uber-a-lone-rogue-in-toronto|title=Uber: A Lone Rogue in Toronto|publisher=Toronto Sun|date=October 18, 2012|accessdate=December 5, 2012}}</ref>

Revision as of 05:40, 6 December 2012

Uber, Inc.
Company typePrivate
IndustryTransport
FoundedJanuary 2011
FounderGarrett Camp, Travis Kalanick
HeadquartersSan Francisco, California, U.S.
Area served
United States
Key people
Travis Kalanick (CEO)
ServicesVehicles for hire
Revenue31,877,000,000 United States dollar (2022) Edit this on Wikidata
−1,832,000,000 United States dollar (2022) Edit this on Wikidata
−9,141,000,000 United States dollar (2022) Edit this on Wikidata
Number of employees
12,000 (2017) Edit this on Wikidata
Websiteuber.com

Uber (formerly UberCab) is a venture-funded startup company based in San Francisco, California that makes a mobile application that connects passengers with drivers of luxury vehicles for hire.[1] The company arranges pickups in the San Francisco Bay Area, New York City, Los Angeles, Seattle, Chicago, Boston, Washington, D.C., Vancouver, Toronto, Paris, Philadelphia, Dallas and San Diego.[2]

Uber drivers have cars such as Lincoln Town Cars, Cadillac Escalades, BMW 7 Series, and Mercedes-Benz S550 sedans. Cars are reserved by sending a text message or by using a mobile app. Using the apps, customers can track their reserved car's location.[3]

History

Uber was founded by Garrett Camp, Travis Kalanick and Oscar Salazar in 2009. The original idea occurred to them at the 2008 LeWeb conference in Paris. The Uber product was officially launched in San Francisco in 2010 with Ryan Graves as CEO. Ryan Graves later stepped down from his role and Travis Kalanick was made the CEO.[4]

The domain name "uber.com" had been owned by a social networking and blogging company which had shut down its services in September 2008. In 2009, the domain name was transferred to the Uber cab service.[5]

Uber originally worked exclusively by text messaging. Uber's mobile app launched in 2010 in San Francisco, on iPhones and Android phones.[6]

The company has gradually expanded its service to cover more cities. Travis Kalanick said in December 2011 that in response to growing demand, Uber is also planning to target 25 more cities outside the United States in the coming months.[7]

The company received venture funding in late 2010 from a group of super angel investors in Silicon Valley, California, including Chris Sacca.[8] In early 2011, Uber raised more than $11.5M in Series A funding led by Benchmark Capital.[9] In late 2011, Uber further raised $32 million in funding from several investors that include Goldman Sachs, Menlo Ventures and Bezos Expeditions[10] bringing their total funding amount to $49.5M.

In April 2012, Uber tested reservations for conventional taxis, at lower rates, in Chicago.[11]

In July 2012, the company entered the London market with an initial staff of about 90 drivers of Mercedes, BMW and Jaguar. [12] On July 13 in honor of National Ice Cream Month, Uber launched Uber Ice Cream, which added the ability in 7 cities to summon an ice cream truck for on-demand delivery, and bill the purchase to a user's account.[13]

Regulatory opposition

Uber has been accused in several jurisdictions of illegal taxicab operation.

In May 2011, Uber received a cease-and-desist letter from San Francisco's Metro Transit Authority, claiming that it was operating an unlicensed taxi service, and another legal demand from the California Public Utilities Commission that it was operating an unlicensed limousine dispatch. Both claimed criminal violations and demanded that the company cease operations. In response the company, among other things, changed its name from UberCab to Uber.[14]

In January 2012, an Uber driver's cab was impounded as part of a sting by the Washington D.C. taxicab commission. The commissioner said the company was operating an unlicensed taxicab service in the city.[15] Following a social media campaign by Uber's users, the D.C. City Council voted in July to formally legalize this type of service, with no minimum fare.[16]

On August 1, 2012, the Massachusetts Division of Standards issued a cease and desist letter to Uber, on the grounds that the GPS-based smartphone app was not a certified measurement device. But on August 15, the agency reversed its ruling after prodding by Governor Deval Patrick, saying that technique was satisfactory because it was under study by the National Institute of Standards and Technology.[17]

On October 5, 2012, Uber was sued by the taxi and livery companies in Chicago. According to the release, Uber is accused of violating Chicago and Illinois laws designed to protect public safety, consumer protection and fair practices.[18]

The New York City Taxi and Limousine Commission has discouraged drivers from participating in Uber, resulting in suspension of its hackney service in October 2012.[19] When Hurricane Sandy hit New York later that month, Uber drew criticism for doubling prices as part of its "surge pricing" system.[20] (Uber ultimately waived its fees and passed on all of the fares to its drivers, and defended its pricing by noting that it tripled the number of vehicles available.)

On November 22, 2012, Uber announced that it was exiting the "Secret Uber" stage in Vancouver and raising its rates to $75 per hour.[21] Uber's problems with local regulations were widely known in the local business community after a September article in the business press reported that the company was dodging phone calls from provincial regulators seeking information about driver credentials, insurance & business licenses. [22] As of December, six months after starting operations in Vancouver, Uber had not yet applied for a license to operate a taxi or limousine dispatch service in the city.[23]

On December 05, 2012, officials at the City of Toronto announced that Uber was being charged with "25 municipal licencing offences, including operation of an unlicensed taxi brokerage and unlicensed limo service".[24] The City officials said they had met with Uber representatives "in the spring" and advised that the company would have to comply with local regulations. Rival taxi dispatch apps had heeded those warnings and obtained licenses so, by October 2012, a local paper could call Uber "the last such app to attempt to operate in Toronto in rogue fashion."[25]

Pricing and payments

Uber's pricing is similar to metered taxis although all hiring and payment is handled exclusively through Uber and not with the driver personally. If the Uber car is travelling at a speed greater than 11 mph, the price is calculated on a distance basis. Otherwise, the price is calculated on a time basis.[26] Prices are about 50% to 75% higher than prices charged by conventional taxicabs.[10] At the end of a ride, the complete fare (which includes a tip) is automatically billed to the customer's credit card.[3] Uber has said that its high prices are the premium that the customers pay for a cab service that is not only reliable but also punctual and comfortable.[27][28][29]

During holiday times, such as Halloween or New Year's Eve, Uber increases its prices to "surge price" levels. Customers receive notice when making a reservation that prices have multiplied by a factor of 2x or more. This is done to attract more drivers and to create equilibrium between supply and demand.[30] During New Year's Eve 2011, surge pricing reached levels as high as seven times the normal rates, causing outrage in response to charges such as $135 for a one-mile trip.[31] Uber co-founder Travis Kalanick responded by explaining, "Because this is so new, it’s going to take some time for folks to accept it. There’s 70 years of conditioning around the fixed price of taxis."[31]

Reception

Marc Andreessen said that he would love to invest in Uber. He told CNET, "Uber is software eats taxis. It's a killer experience. You watch the car on the map on your phone as it makes its way to you."[32] The New York Times has called Uber "clever but costly," noting that the cars are "particularly nice by livery standards" and that pickup times were slow compared with traditional New York City taxis and black cars.[27]

Several drivers have credited Uber for increasing their potential earnings by 30%. The drivers and riders rate each other after each trip, improving the experience for both the driver and the rider.[33]

References

  1. ^ Goode, Lauren (June 17, 2011). "Worth It? An App to Get a Cab". The Wall Street Journal. Dow Jones & Company.
  2. ^ Velazco, Chris. May 3rd, 2012. "Uber Feels The Brotherly Love, Begins Testing Its On-Demand Car Service In Philadelphia." http://techcrunch.com/2012/05/03/uber-feels-the-brotherly-love-begins-testing-its-on-demand-car-service-in-philadelphia/
  3. ^ a b Rao, Leena (September 22, 2011). "Uber Brings Its Disruptive Car Service To Chicago". TechCrunch. AOL.
  4. ^ Arrington, Michael (December 22, 2010). "Uber CEO "Super Pumped" About Being Replaced By Founder". TechCrunch. AOL.
  5. ^ Hefflinger, Mark (September 29, 2008). "Social Network Uber.com Shutters After Investors Bail". Digital Media Wire. Los Angeles.
  6. ^ Jackson, Nicholas (November 16, 2010). "Hailing a Cab With Your Phone". The Atlantic. The Atlantic Monthly Group.
  7. ^ Bremmen, Nur (December 7, 2011). "Six innovative mobile apps to keep your eye on [LeWeb]". memeburn.
  8. ^ Ha, Anthony (October 16, 2010). "UberCab raises $1.25M to end your futile search for taxis". VentureBeat. Reuters.
  9. ^ "Exclusive: Uber CEO Lays out Road Map--Helicopters, Motorcycles and Food Delivery". LAUNCH. LAUNCH Media. August 16, 2011.
  10. ^ a b Shankland, Stephen (December 7, 2011). "Car service Uber raises $32 million, launches in Paris". CNET News. CBS Interactive.
  11. ^ Uber Experiments With Lower-Priced Taxis In Chicago Through Newly Launched Labs Group, ‘Garage’ | TechCrunch
  12. ^ Dredge, Stuart (July 2, 2012). "Apps Rush: Uber, Google Analytics..." The Guardian.
  13. ^ Albanesius, Chloe. "http://www.pcmag.com/article2/0,2817,2407069,00.asp". PC Magazine. Retrieved 14 August 2012. {{cite web}}: External link in |title= (help)
  14. ^ Siegler, MG (May 25, 2011). "Uber CEO: I Think I've Got 20,000 Years Of Jail Time In Front Of Me". TechCrunch.
  15. ^ Greene, David (January 31, 2012). "Upstart Car Service Butts Heads With D.C.'s Taxis". NPR.
  16. ^ Uber, Maker of Summon-a-Car App, Wins in Washington - NYTimes.com
  17. ^ Michael B. Farrell (2012-08-15). "State reverses ban on Uber car service ordering app". Boston Globe.
  18. ^ "Uber Sued By Taxi And Livery Companies In Chicago For Consumer Fraud And More". TechCrunch. October 5, 2012. Retrieved October 6, 2012.
  19. ^ Uber shuts down New York City taxi beta, may see light at the end of the (Lincoln) tunnel in February (update: TLC responds) - Engadget
  20. ^ Uber Doubles New York Driver Pay To Get More Vehicles On The Road (And Eats The Cost) (UPDATE)
  21. ^ "Uber to Raise Minimum Charge for a Ride to $75". Techvibes. November 22, 2012. {{cite news}}: |access-date= requires |url= (help); Text "url:http://www.techvibes.com/blog/uber-to-raise-minimum-charge-for-a-ride-to-75-ubervanlove-2012-11-22" ignored (help)
  22. ^ "Ride-for-hire alternative enters market". Business In Vancouver. Sep 18, 2012. {{cite news}}: |access-date= requires |url= (help); Text "url:http://www.biv.com/article/20120918/BIV0112/309189915/-1/BIV/ride-for-hire-alternative-enters-market" ignored (help)
  23. ^ "Black sedan service hits regulatory speedbump". Business In Vancouver. Dec 4, 2012. Retrieved December 5,2012. {{cite news}}: Check date values in: |accessdate= (help)
  24. ^ "Taxi app company Uber charged with licensing offences". Toronto Star. December 05, 2012. Retrieved December 05, 2012. {{cite news}}: Check date values in: |accessdate= and |date= (help)
  25. ^ "Uber: A Lone Rogue in Toronto". Toronto Sun. October 18, 2012. Retrieved December 5, 2012.
  26. ^ Peak, Krystal (December 7, 2011). "Uber pulls in another $32M for app-based car service". VatorNews. Vator.
  27. ^ a b Brustein, Joshua (May 16, 2011). "The Smartphone Way to Beckon a Car". The New York Times.
  28. ^ voytek (April 11, 2011). "Uberdata: The Hidden Cost of Cabs". Uber Blog. Uber.
  29. ^ Arrington, Michael (March 2, 2011). "A Week With Uber And This Blogger Is Totally Hooked". TechCrunch. AOL.
  30. ^ Clay, Kelly (October 27, 2011). "Is Uber Really a Good Alternative to Taxis?". LockerGnome. Lockergnome.
  31. ^ a b Bilton, Nick (January 8, 2012). "Disruptions: Taxi Supply and Demand, Priced by the Mile". Bits. The New York Times Company.
  32. ^ Sloan, Paul (December 19, 2011). "Marc Andreessen: Predictions for 2012 (and beyond)". CNET News. CBS Interactive.
  33. ^ Robbins, McLean (December 19, 2011). "Uber - your new luxury car service app". Gadling. AOL.
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