Uberisation: Difference between revisions

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{{short description|Commoditization of an existing service-based industry by new participants}}

{{Use British English|date=May 2016}}

{{Strategy}}

'''Uberisation''' or '''uberization''' is a [[neologism]] describing the [[commoditisation]] of an existing [[service industry|service-based industry]] by new participants using [[computing platform]]s, such as mobile applications, in order to aggregate transactions between clients and providers of a service, often bypassing the role of existing [[intermediaries]] as part of the so-called [[platform economy]]. This [[business model]] has different operating costs compared to a traditional business.<ref name="cso.com.au">{{cite web|url=http://www.cso.com.au/mediareleases/27033/taking-uberization-to-the-field-disruption-is/|title=Taking uberization to the Field - Disruption is coming for Field Marketing|date=9 May 2016}}</ref>{{r|MTN}}

The term is derived from the company name "[[Uber]]". The company developed a mobile application that allows consumers to submit a trip request which is then routed to Uber drivers who use their own cars.<ref>{{cite news |title=Uber Dispatches trips |first1=Evelyn |last1=Rusli |url=https://ottawacitizen.com/news/local-news/uber-ride-sharing-program-seeks-ottawa-drivers |work=Wall Street Journal |date=June 6, 2014 |access-date=November 7, 2014}}</ref><ref name="wsj">{{cite news | url=https://blogs.wsj.com/digits/2011/06/17/worth-it-an-app-to-get-a-cab/ | title=Worth It? An App to Get a Cab | work=The Wall Street Journal | date=June 17, 2011 | agency=Dow Jones & Company | last=Goode | first=Lauren}}</ref>

==Background==

Uberisation has been made possible by the development of [[information technology|digital technologies]] developed in the 20th and 21st centuries. Business organisations such as [[Uber]], [[Grab (company)|Grab]], [[Lyft]] and [[Airbnb]] enable potential customers to be put into direct contact with potential providers of a service. The phenomenon of uberisation is characterised by the elimination or quasi-elimination of [[Intermediary|middle man]] roles.{{r|MTN}}

Uberised business formats are characterised by the following elements:{{r|pp}}

* The use of a digitalised platform enabling peer-to-peer, or quasi-peer to peer transactions.

* Minimising the distance between the provider and customer of a service.

* The use of a rating system for the quality of the service provided by a provider.

==Prevalence==

Uberisation has, as of yet, taken place in a limited but growing amount of industries. For example, with the advent of [[Airbnb]], the hospitality industry has been transformed to a large extent, estimated by industry analysts to have a total annual value, just in New York City, of over US $2.1 billion.<ref>{{cite web|url=http://hotelmarketing.com/index.php/content/article/new_study_confirms_airbnbs_negative_impact_on_hotel_industry|title=New study confirms Airbnb’s negative impact on hotel industry}}</ref> While uberisation has been criticised as potentially catalysing a chaotic shift by undermining existing corporate models in the hospitality and taxi industries, existing companies in industries such as [[marketing]] can use the phenomenon to reduce expenses and provide more specialised services for customers.{{Citation needed|reason=Former link was broken.|date=November 2021}}

==Ethical concerns==

Uberisation has been criticised for its role in facilitating the decline of labour-intensive industries, and hence for threatening jobs.<ref>{{cite web|url=http://www.euractiv.com/section/social-europe-jobs/opinion/the-uberisation-of-the-workplace-is-a-new-revolution/|title=The ‘uberisation’ of the workplace is a new revolution|work=EurActiv.com}}</ref><ref>{{cite web|url=https://www.forbes.com/sites/tomaspremuzic/2014/03/21/the-uberisation-of-talent-can-the-job-market-really-be-optimised/#185eb06f2e60|title=The Uberisation of Talent: Can the Job Market Really Be Optimised?|author=Tomas Chamorro-Premuzic|date=21 March 2014|work=Forbes}}</ref>

Uberisation has also raised concerns over government regulations and taxation, insofar as the formalised application of the [[sharing economy]] has led to disputes over the extent to which the provider of services via an uberised platform should be held accountable to corporate regulations and tax obligations.<ref>{{cite web|url=http://www.businessinsider.com/afp-uberisation-of-economies-pinching-state-tax-revenues-2015-9?IR=T&r=US&IR=T|title='Uberisation' of economies pinching state tax revenues|date=27 September 2015|work=Business Insider}}</ref>

==See also==

* [[Access economy]]

* [[Customer to customer]]

* [[Digital transformation|Digitalisation]]

* [[Entregadores Antifascistas]]

* [[Generic trademark]]

* [[Internet of things]]

* [[Network economy]]

* [[Platform economy]]

* ''[[The Wealth of Networks]]''

*''[[Aslam v Uber BV]]'' (2016)

==References==

{{Reflist|30em|refs=

<ref name=MTN>{{cite web|last1=M. Lazo|first1=Kristyn Nika|title=Execs wary ‘disruptive tech’ to heighten biz competition – IBM|url=http://www.manilatimes.net/execs-wary-disruptive-tech-to-heighten-biz-competition-ibm/260144/|publisher=[[Manila Times]]|access-date=8 May 2016}}</ref>

<ref name="pp">{{cite web|last1=Pichère|first1=Pierre|title=Les artisans face au choc de l'ubérisation|url=http://www.lemoniteur.fr/articles/les-artisans-face-au-choc-de-l-uberisation-32155486|publisher=Le Moniteur|access-date=8 May 2016|pages=12–15|date=29 April 2016}}</ref>

== External links ==

* {{Wiktionary-inline}}

{{Uberisation}}

[[Category:Uberisation| ]]

[[Category:Business models]]

[[Category:Computer networking]]

[[Category:Social networks]]

[[Category:2010s neologisms]]