Saturday, April 25, 2015

Tamás Regőczi: The advantages of Uber and Airbnb

Regőczi Tamás

The advantages of Uber and Airbnb

In today’s technology and internet suffused world, community based services such as Uber and Airbnb are extremely popular. These services are the same in a sense that the user requests the service offered by the company using a website or an app, but the request is fulfilled by other users who decided to be self-appointed drivers or hosts. This implies that the quality of the service will not reach the level which we would expect in the case of professional taxi drivers and hostels, however, many people still choose to use them because they are fast, easy, and most importantly they leave more money in their pocket. Not surprisingly, there are also many people who oppose the existence of these companies and do everything in order to shut them down.
Uber is an app available for smartphones which can be used to call a car to your location, and it drives to your desired destination in exchange for money. This sounds almost exactly the same as every other taxi company, but as always the devil is in the detail. The driver who comes to transport, is not qualified as a taxi driver – most likely working for Uber as a second job – and also the car is the driver’s own personal car. Obviously, regular taxi companies are constantly protesting against Uber all over the world, since customers have numerous reasons to choose Uber instead of them. Using Uber, the customer’s phone calculates the most optimal route, and based on this, the price is given before the actual ride. Additionally, the customer can rate his driver, so future customers can choose from the drivers with the help of their rate. Once a driver’s rate falls below a certain level he loses his right to use the app, so the quality of the service is assured. Naturally, Uber drivers have their driver’s licenses, which means that they are able and allowed to drive a car even with passengers so they are not different from a taxi driver. Moreover, they are definitely strong competition to regular taxi companies, which is the main reason why regular taxi drivers protest and organize strikes against Uber.
Airbnb offers a solution for another problem of travelers, namely that of accommodation. If a traveler does not want to pay the costs of the luxurious circumstances offered by hotels, and his only need is a bed to sleep on or just a mattress, then the best choice is Airbnb. Airbnb is a website which connects travelers who need a room or bed for only a few days with real estate owners who are willing to rent their home or a part of it. It allows people with little needs and low budget to spend to visit other countries and cities. This also means that more people can afford to travel and also to spend money on tourist attractions, which means a huge extra income for the economy. Moreover; Airbnb gives a new experience of traveling, since the owner shares his home with the traveler. In the case of hotel the traveler gets a clean room to stay in, while with Airbnb it is like spending a night at a friend’s house: the surroundings are much more personal, the renter may even happen to become friends with the owner.

In conclusion, these services mean alternative choices instead of regular hotels and taxi companies by offering features which the latter cannot do. They also bring competition to these companies in monopolistic state, and customers are the ones who benefit from competition. 

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