UBER – is it a Small Business?
I’ve heard several people refer to Uber as a Rip-off but is this just sour grapes from people who are threatened by it.
What is it kike for the average Uber Driver.
To start with what is Uber?
You may have heard it refereed to as a “Rideshare” company.
This is not strictly true. Ride-share is where you are going on a journey already and take on additional passengers to share the cost.
I will deal with this in another article.
To be strictly accurate we should call Uber a “Ride-hail” organisation. But few of us use that term.
Simply it is a system that provides drivers to people who need transport.
You’ve got it a sort of internet based Taxi service although registered taxi driver would rave at such a description.
How Uber works?
The Uber driver, once registered and approved, has an App on his mobile phone.
At the other end of the system anyone can have an Uber users App on their phone, it’s free.
if they want transport the user simply looks at the App and can see a map showing their location and all the Uber cars within easy distance.
To keep up to date with Uber and their competitors in the UK press the button here.
Meanwhile with the Uber Driver
If you, the Uber Driver are one of those within range your phone will alert you to the potential customer and show you where they are and where they want to go.
If you want to take it you just press the red button, then just press it again when you arrive at the destination. Uber will record the distance and charge your passenger for the distance covered.
You get paid by Uber directly into our account.
What are the good points?
- 1. You can work as much or as little as you want.
- 2. You can work the hours that suite you.
- 3. You can use your existing vehicle ( provided that it is of the required standard)
- 4. Uber serve many leading UK Cities and some other areas.
- 5. Only a driving license needed, no tests or qualifications
What are the negatives?
- 1. You are self employed – you get no holiday pay, sick pay or benefits.
- 2. There is no minimum wage
- 3. Uber take 20% ( and are increasing this to 25% for new drivers) commission
- 4. You may get aggro from some Taxi drivers who regard you as a threat to their livelihood.
- 5. You must provide suitable Insurance
- 6. You will have to deal with the public, often in an intoxicated or aggressive state.
- 7. You will be subject to checks.
Can you Grow the Business
Well not really you are one man with one car although you can earn additional cash by signing up new drivers or clients.
It is not really an entrepreneurial venture.
Having said that it’s early days int he UK. If things go the same way as In the USA there will be competitors springing up and who Knows where that could lead.
Uber have introduced special services to cover the needs of those requiring high quality cars, limo’s and vehicles with disabled facilities so whatever you drive there’s an opening.
As I already mentioned it is certain that competitors will spring up.
One area that will come under pressure the delivery market. White Van Man may well be an Uber van or one of the competitors.
Unfortunately Uber have come under a lot of criticism especially over their insistence that drivers are not employees but self employed contractors. This may well have to change.
Trouble on the Horizon
I couldn’t do an article about Uber without mentioning the possibility that as a career being an Uber driver may have a limited future.
Many large and powerful companies, including Uber themselves, Are looking to the future.
What do they see?
They can see a time, and not far away, when all city transport will be using driver-less vehicles. These Automaton Cars may be a lot closer than we think making the battle between Uber drivers and Taxi drivers a side issue.
What will the future hold?
In the short term Uber and Uber look alike businesses will take a sizeable share of the Taxi and hire car market.
In the long term we will all be taken from place to place in a driver-less car no banter and no advice on putting the world to rights. Still that’s progress, or is it.
It’s up to you
If you are looking for a part-time job to boost your income then it’s well worth a closer look. As a full time job, you would have to really look into it but bare in mind that this is the UK and the laws rules and conditions may be very different from other parts of the world.
For more information on Uber UK visit the Rideshare-Uk website