Capitalism plays an important role in increasing the opportunities present in the marketplace for economic growth. It also increases the opportunities for business people to improve their personal wealth and also ensures that the societies also grow. The chances that economic production in capitalism is privately own are higher than they are governmentally owned. Therefore, capitalism results in a competitive market resulting in a wide range of goods and services to choose from (Smith, 2015). On the other hand, socialism is majorly owned by the government, and it seeks to enhance equality by providing social services such as healthcare and education. The operations of Uber can be looked into the facets of capitalism and socialism. The question that arises in this regard is if the Uber drivers are regarded as employees of the company or rather independent contractors. However, most drivers consider themselves as independent contractors. Certain laws are in support of Uber operations, and since it is a third party transportation service, the agreement between the affiliate parties and Uber makes it legal. Capitalism affects the Uber Company via the competitive market which sees them compete with the taxi services (Mashable 2014). The Uber business, just like many other businesses, is not only concerned with making profits, but has other social responsibilities that include eliminating discrimination, creating employment, and avoiding pollution among others. It is also critical to note that the Uber services can be used by different customers on the same route hence benefiting everyone and ensuring that the customers ride at a discounted rate. This further reduces greenhouse emission because fewer cars are being driven.
The government has a primary responsibility of ensuring balance with regards to the Uber business. The labor laws in particular play an important role in supporting the operation of the Uber business. The business model of the Uber service represents them as independent contractors and not employees under a given people or organizations. Laws have been passed by states and municipals which designate the drivers as independent contractors. Such laws promote the operation of Uber because they are exempted from state regulation as happens to other transportation companies. Laws have been enacted to recognize Uber as a technology platform that assists the willing drivers with willing passengers who in turn pay for a ride. Some states such as Alaska are in a battle of the misclassification of Uber as either contractors or employees. The transportation networks in some states are regulated hence inhibiting the Uber operations in the specific areas.
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Uber is an independent company that is economically driven and mainly capitalizes on profits. It is therefore greatly affected by the economy (capitalism and socialism) and various laws. Uber is affected economically because first, it does not need to have the costs required to run a business such as a vehicle ownership, maintenance, and the cost of fuel among others. The competitive nature of the transport business, especially with the taxi industry, ensures that it develops certain competitive advantages that make it an outstanding transport business. The fact that most states do not hold the business accountable for labor and state regulated makes its operations much easier. Most of the states regard Uber as an independent contractor business hence giving them leverage in the transportation network companies.
With regards to the moral position concerning the Uber business, the most appropriate theory that could be used to explain it is the utilitarian perspective. Fieser (2015) asserted that it states that an action is morally right so long as the results or consequences are more favorable to people than they are unfavorable to them. Uber has for some time employed the utilitarian model where they adhere to business ethics because of their ride-sharing styles which are favorable to both the customers and drivers. The business is also sensitive to the corporate social responsibility where it is cognizant of the environmental needs and other economic benefits such as creating employment.
References
Fieser, J. (2015). Introduction to business ethics [Electronic version]. Retrieved from https://content.ashford.edu/
Mashable. (2014, October 9). What is Uber? | Mashable explains (Links to an external site.)Links to an external site. [Video file]. Retrieved from https://youtu.be/tQlgavP5cmo
Smith, J. W. (2015). The Uber-all economy. Market News, 49 (6), 26. Retrieved from http://www.ama.org/
