Many economic systems govern the various global markets. The most notable being the socialism and capitalism systems (Schneider, 2017). The capitalism system is based on private ownership, while socialism is based on social ownership. In a capitalism economy, the government encourages local and international private investors to operate freely under the market forces of demand and supply. The government gives these owners a free hand to run their businesses with minimal government interference. On the other hand, the social, economic system believe that the community should pull their efforts together to benefit all persons in the economy and society (Schneider, 2017). There are many pros and cons to both these economic systems, and many world governments prefer to strike a balance by borrowing from the strengths of both economic systems in a plan referred to as a mixed economic system (Schneider, 2017).
The Uber Company is considered a market disruptor due to its brilliant idea of using a software application to access a taxi ride (Schneider, 2017). This business model increased efficiency in the taxi transport business as both the ride operators and customers now have a more natural way to access each other. The Uber Company enjoys a considerable percentage of the taxi business market share in the globe (Schneider, 2017). This has only been made possible by the economic systems that operate in the various geographical areas in which Uber has penetrated. Uber has flourished under a mixed economic system in its area of operation. This is to say that there is minimum government interference in the countries in question, and the market forces of demand and supply are in play (Schneider, 2017).
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The economic systems and laws of the different geographical areas have enabled the Uber Company to flourish in many countries. Notably, the firm is a multibillion company providing business and benefits to many stakeholders (Schneider, 2017). First and foremost, it has provided affordable yet efficient transportation for its customers. At a touch of a button, a consumer can call for a ride, monitor its movement, determine the cost of travel, and even access remote, inaccessible areas. Equally, the firm has provided employment opportunities and independent working conditions for Uber drivers. Drivers have the free hand of planning their working schedule and financial goals (Schneider, 2017).
Under the theory of virtue ethics, the Uber's position in the market is morally wrong. According to Aristotle, a virtuous person knows what is right and does it with the right balance without causing harm to others (Schneider, 2017). The Uber firm took the market by storm by lowering the cost of transportation for its consumers as well as making it very easy to order for a taxi. However, this company does not provide its drivers with vehicles. Instead, the drivers are expected to register their vehicles to be used as taxis. These vehicles must be in impeccable working condition and reasonably new. The cost of purchasing the vehicle is not factored into the cost of doing business (Schneider, 2017). Further, the Uber firm deducts a considerable percentage from the income of the riders just for providing a software application. They give no regard to the driver's take-home pay. Many drivers complain of low pay, high overheads, and long working hours (Schneider, 2017). Since the Uber Company is a profitable multi-billion venture, the drivers who make this possible should be able to enjoy a substantial share of the profits.
References
Schneider, H. (2017). Creative destruction and the sharing economy: Uber as disruptive innovation . Edward Elgar Publishing.
