Background
Currently, Uber Technology Inc. has become a widely known company in most part of the world for its Uber App that provides a ride-sharing connection between riders and independent contractors (drivers). This unique app has seen more than 30 million riders using this app monthly within 425 cities in 72 countries where it operates. Further, this technology has been embraced as a key contributor in the economic growth for this new economic model that is now enabling drivers to rent out their underutilized resources such as vehicles to the demanding consumers. It has introduced a ‘sharing economy' which has substituted resources owning outright such vehicles at a cheaper price. However, like any other business, economic challenges are inevitable. In most parts of the world where Uber offers this service, there are emerging challenges relating to social and technical as well as legal and regulatory obstacles. With this, the major issue for this discussion is legal and regulatory obstacles.
Issue
It is a fact that Uber is not subjected to equal states or federal regulation like any other taxi or cab companies. Uber’s competitors in the taxi industry have argued that Uber is earning from ‘unfair’ advantage as the independent contractors (drivers) does not require any licensing required to operate in this industry. The essence of fairness brings about the concept of an ethical issue. In fact, one just needs to own a personal car and register with the Uber app. Unlike other taxi companies, they have to register with the state’s authority and pay for the operating license. Further, Uber vehicles do not need a designated place to wait for the customers. The driver just needs normal parking and wait for a ride request from the customer through the app. This has been as another ethical issue of how Uber operations can be regulated as they operate online. Therefore, in an attempt to get a solution for this ethical issue facing the taxi industry, it is important to answer should the Uber’s app be overseen by the local taxi commissions or state regulators?
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Analysis
Yes, Uber apps should be overseen by a regulating authority. In any legal system, equality and fairness should be the leading code of conduct. In the case of the taxi industry, all the operators should be under one roof in terms of legal compliance. Considering that Uber drivers have neither a physical area of operation nor brand of their vehicles, having a third party will enhance equality and fairness in the industry. If a regulating says local taxi commission is monitoring the app, it will be able to know how many drivers are registered, revenue generated, and taxi to be paid to the local authority depending with the earning of a driver. Assuming that this app will not be monitored by a legal third party, it will be difficult to determine to know the drivers operating under this platform and the earning they receive. This will mean that Uber independent contractors will be earning a ‘tax-free' revenue while other players in this industry are paying levies to the local authority through payments for operating licenses.
Conclusion
In conclusion, monitoring a business that does not have a physical address or area of operation may be difficult for the legal authorities. However, this does not limit the capacity of the legal authority to monitor these economic players. With this, the Uber’s application remains the only platform where its operations can be kept on check. This will see all players in the taxi players in the taxi industry being subjected to equal regulations although at different economic dimensions.
