The capacity of existing or human resources.The Uber service

The introduction of a private taxi service which deals with driver-rider interaction through a mobile application has made the request for taxis much easier. Traditionally, one has to stand by the road to call for a taxi and negotiate prices. The introduction of a transport service where prices are predetermined online the rider knows the fare before joining the ride makes the advent of Uber services into the country a huge changing phase of the transportation industry in Accra and Kumasi. Uber has introduced the concept of a shared economy in the transport industry. A sharing economy, according to Wikipedia, “is an umbrella term with a range of meanings, often used to describe economic activity involving online transactions.” The term Uberisation has been coined out of this phenomena to mean an economic system where agents exchange under-utilized capacity of existing or human resources.The Uber service makes use of a digital platform where patrons of the service known as riders request for taxis directly from drivers while being shown the distance, estimated driver’s time of arrival, estimated ride time and fare. It runs on an optimization software where distance and time are used in the determination of fares for riders. The rates, although dynamic with changes in demand and supply, are mostly cheaper than that of the traditional taxis. For instance, if there is high demand by riders but few drivers on the road, the prices increase and people are left with no choice but to go with the traditional taxis. Around the world, Uber has been a sensation in the development of transportation. Though it is progressively growing, it has an adverse impact on traditional taxi operators in countries where they are. Currently, Uber is facing several challenges in most European countries and in the United States where they operate. These are challenges they face from traditional taxi operators mostly. The Economist on 25th March, 2017 reportsReports of a strike action by taxi drivers in the United States undertook in January 2017 which encourageding users to stop using the Uber app with an online campaign #DeleteUber (Delete Uber). Another was a violent strike action in France by taxi drivers, smashing cars, setting tires on fire and blocking traffic to register their displeasure at the operation of Uber in France. They claimed the Uber service was “unfairly undercutting them. In yet another example,, the Chinese government banned drivers of private cars from offering their services through taxi-hailing apps. According to Seattle Times, the Uber offices in Guangzhou were raided and several equipment used in running the service were seized. These are few examples of incidents recorded in some countries around the globe especially of calls to boycott the Uber service (The Economist, 2017; The Seattle Times on June 25, 2015) reports of a various actions undertaken by taxi drivers in some selected countries to boycott Uber services. It violent strike action in France by taxi drivers, smashing cars, setting tires on fire and blocking traffic to register their displeasure at the operation of Uber in France claiming the Uber service is “unfairly undercutting them.” In January 2015, the Chinese government banned drivers of private cars from offering their services through taxi-hailing apps. According to Seattle Times, the Uber offices in Guangzhou were raided and several equipment used in running the service were seized. Uber;s image was further dented when Iin March 2015, UN Women backed out of an Uber partnership which was to create jobs for a million women drivers by 2020, after trade unions and civil society groups and some governments opposed to the scheme. Uber interestingly owns none of the vehicles it uses for its operations. The vehicles used belong to Uber drivers or other car owners who lease their cars to others for use in which they take a percentage of daily sales. Hence, Uber has provided an alternative livelihood for drivers and car owners who lease their cars out for the operations as many of them take. It can therefore be hypothesized that the advent of Uber has had a significant impact on traditional taxi operators, raising competition in the industry.Uber was introduced in Ghana on 8th June 2016 in Accra where it began its full operations on 11th June, 2016, making it the 8th African country to be introduced to the service. It set its base fare at GH¢1.70 + GH¢1.30 per kilometer and GH¢0.19 per minute, making its minimum fare GH¢5 with a cancellation fee of GH¢5 which is added to the actual cost of a riders next patronage. It expanded its service to Kumasi on August 31, 2017.This study borrows from the economic variables used by Hung-Hao Chang (year of publication) which he discusses in his paper, The Economic Effects of Uber on Taxi Drivers in Taiwan, to tlook into consideration these economic variables which will also be relevant to this study which will look at the impact on traditional taxi operators in the Accra Metropolis. These variables y include The Uber impact on taxi drivers’ market power by measuring the profit margins of traditional taxi operators pre and post Uber operations. Another is to examine He also looks at whether the introduction of Uber has had an effect on the revenue and operating costs of traditional taxi operators. He also factors in the impact of Uber on traditional taxi operators with different operation models – the unionized taxi operators and the non-unionized taxi operators. He also investigated the response of taxi drivers to the competition by Uber and further investigated whether Uber operation alters the income diversification or provision of better ride services by traditional taxi operators.This study will also take into consideration the patrons of Uber in Accra, investigating the factors which influence their patronage of the service. It will also investigate the categories of people who patronize the service by taking into consideration their age, income and sex.1.2 Problem StatementUber services around the world face a common problem in most countries in which they operate –   the protest and agitations of traditional taxi operators against an unhealthy competition. In a personal interaction with 10 taxi drivers in the Accra Metropolis at random, 7 of them complained that Uber operations in the city has snatched their customers from them with the other 3 not knowing what Uber is. While Uber is creating jobs, it is also having an effect on an already existing industry. This study therefore seeks to identify the major effects Uber has had on traditional taxi operators in the Accra Metropolis.1.3 Research Aim and ObjectivesThe aim of this study is to examine the economic impact of the Uber service on traditional taxi operators in the Accra Metropolis.This paper’s objective specifically is to:i. Establish the Uber impact on taxi drivers’ market power by measuring the profit margins of traditional taxi operators.ii. Measure the impact of Uber on traditional taxi operators with different operation models – the unionized taxi operators and the non-unionized taxi operators.iii. Enquire if traditional taxi operators are willing to adapt the Uber system of pricing.iv. Investigate the factors which influence their patronage of the service.v. Determine the categories of people who patronize the service by taking into consideration their age, educational level, income and sex.1.4 Justification of the StudyUber is creating a growing impression in the country, a study has not been done on it yet regarding the service’s operation in the country most especially its economic impacts on traditional taxi operators. Most of the studies regarding Uber’s economic impact on the traditional taxi industry have been done in some parts of the United States, Europe and Asia. This study therefore is expedient since traditional taxi operators in Accra have begun complaining of an unfair competition by Uber just like it is with their colleagues around the world. Chapter organization?This section is missing in your work !!!Another important section is your references. Please get it done.