The Uber model
Welcome to the Uber age
Industries such as home repair, cleaning, food delivery and Airbnb have taken a leaf out of the taxi-sharing service’s book
The new expression “uberisation” refers to a business model in the so-called sharing economy. It describes the use of a digital platform (often with an app) that is used to gain access to a service — usually through a network of small, independent providers, so that there is no centralised asset ownership (that’s the “sharing” part). Uber uses an app to connect people who want a lift with independent taxi drivers, many of whom are owner-operators, driving their own cars to derive an income. The popularity of this model is due in part to the speed at which these businesses can build scale, because their owners don’t have to invest in their own infrastructure beyond the platform that holds the service together. In SA, there are already at least 12 providers that have borrowed this model, either wholesale or in part, to leapfrog competitors and create jobs. However, the model is not without its detractors — especially in terms of the perceived lack of security and sustainability of tho...
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