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Governance CS3

Uber has expanded rapidly and become very successful, but this expansion has also led to problems and lawsuits. As Uber expands into other industries, regulations need to be developed to protect both competitors and consumers. Key areas for regulation include establishing safety protocols for consumers, ensuring driver qualifications like criminal background checks, setting fair pricing standards, clarifying insurance coverage for accidents, and promoting fairness for competitors through consistent standards. Overall, regulations are needed to mitigate conflicts, protect all stakeholders, and allow for sustainable growth of innovative business models.

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Aina Aguirre
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52 views2 pages

Governance CS3

Uber has expanded rapidly and become very successful, but this expansion has also led to problems and lawsuits. As Uber expands into other industries, regulations need to be developed to protect both competitors and consumers. Key areas for regulation include establishing safety protocols for consumers, ensuring driver qualifications like criminal background checks, setting fair pricing standards, clarifying insurance coverage for accidents, and promoting fairness for competitors through consistent standards. Overall, regulations are needed to mitigate conflicts, protect all stakeholders, and allow for sustainable growth of innovative business models.

Uploaded by

Aina Aguirre
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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3.

Because Uber is so popular and the business model is being expanded to other
industries, should there be regulation to develop compliance with standards to
protect competitors and consumers?

- With the rapid expansion of Uber, a regulation should be developed regarding to the
compliance with the standards for competitors and consumers. First is for the
competitors, standards in these same industries that are within the range of the system
of Uber should follow united standards to promote fairness and that no one is above the
other regarding the standards and rules. For consumers, standards should also be
developed since consumers should be treated with care and safety. A safety measures
and policies should be implemented between the two parties to prevent unfair
treatment, discrimination. These standards can protect the rights of both parties anytime
they need it to defend their selves and to prevent taking advantage on them.

Ans 3: Uber is a new business model with a service that no one else has offered before. In many
countries, Uber has been facing lawsuits since there is not much regulation for this kind of business.
It’s also called the sharing economy. It’s a big challenge for countries how to deal with it. I believe
there must be regulations in place since it’s the same for any other business. So governments must
develop such regulations and laws which can be applied. A similar business Airbnb platform where
you can book a room. This room is owned by a private person. This can also cause problems for the
consumer and also hotel owners have been fighting against it. Maybe there will be other such
products in the future. I believe most important areas for regulations are:

We cannot deny that Uber is one of the most successful businesses due to its unique concept and
services it offers. However, if there is success, problems and issues are also present. Out of the
many issues it faces, the one that is really relevant is the lawsuits filed by many against them.

Since they are expanding to other industries, it is not just necessary but it is a MUST for Uber
business to have a regulation to develop compliance with standards to protect competitors and
consumers. Moreover, it is also important to avoid experiencing the above-mentioned problems and
it helps in mitigating conflicts.

A business’s top priority is to protect their most prized asset: customers. It is believed that
the most important aspects for regulations are:

For consumers:
 Standard for care and safety: There should be safety protocols and procedures between the
two parties to prevent unfair treatment, harassment and discrimination. All that don't comply
should have a corresponding penalty or something that will hold them to account for their
acts. These standards will protect the rights of both parties anytime they need it to defend
themselves and to prevent taking advantage on them.
 Customer’s assurance: Since customers just book online, they do not know who or what kind
of person is waiting for them and vise versa. Business must create a strict regulation
regarding the information checking of their drivers (because normally drivers just sign up with
uber and drive). They must ensure that they are only accepting people who are fit to drive;
professionals and experienced drivers. They must guarantee that these people have clean
criminal records. Similarly, they should create a standard about the car that will be used.
Regular checking is needed to see if it is safe for driving (especially long drives) to avoid
accidents and other circumstances.
 Payments: There have been a lot of complaints regarding the “pricy” charge of Uber. A rule
must be imposed to achieve “fair fare” so that people will continue to support and patronize
the business and not switch to other competitor.
 Customer’s accident insurance: We will never know when and where accidents may occur. It
is always better to be safe than sorry so the business must create a certain rule about the
coverage on what the customer will get, how will they be treated and how the business will
deal with it when accidents happened.

For competitors:

 Competitors should be protected as well. Taxi fares and working hours for example are
officially regulated by the authorities. In the case of Uber, it is not the same. This business
control and can change the fares which in consequence can harm other competitors at any
time. With respect to that, standards in these same industries that are within the range of the
system of Uber should follow united standards to promote fairness and that no one is above
the other regarding the standards and rules.

 Accidents coverage for consumer: At the moment it is unclear how consumers are
covered in a U carif there is an accident.
 Protection for personal safety in the car: Some U drivers are private people and non
professionaldrivers. Like anybody can sign up with Uber and drive. This is a big risk to
consumers who do not know who this person is and if this person is an experienced driver.
Also the consumer does not know ifthis person has a clean criminal record.
 Competitors also need to be protected. 'or instance Taxi fares and working hours are
officially regulated by the authorities. With Uber fares it is different. The company which is
private can changetheir fares anytime and harm other competitors.
 Coverage in case of an accident for driver: If they cause an accident with serious
implications or if aconsumer files a law suit against them because they are not satisfied with
the service they are at abig financial risk. At least if they do not have insurance coverage.
 Road safety of private cars: These private cars used by Uber drivers are maybe not well
maintainedand all safe.
 Working hours: Some of Uber drivers are not employed with the company but contractors.
So nobody knows how many hours they work and if they are maybe exhausted from long
working hours andnot really fit to drive.
 Renting private rooms: A consumer who rents a private room does not know the owner.
4aybe it isa personal safety risk.
 Airbnb consumers: AirBnB owners do not know the person who comes to their apartment.
Like in a hotel, the passport is checked. This also is a safety risk.
 Taxes for the government. Drivers for Uber and also Airbnb owners do not pay taxes. This
needs tobe also regulated as hotels and taxi business needs to pay taxes.

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