Take a look at this picture:
On November 4th we had Uber come up as an example in a few presentations. It was an example of how the disorganization of labor creates these fragmented "sub-contractors" where the individual works for themselves. Uber is just one example of this. Others can be seen in the graphic I provided.
I recently visited Montreal to look at schools. I found accommodations through Airbnb. Lets discuss the social and economical implications of these services. Can Airbnb be providing services towards a specific market (students or travelers who wish to experience everything in the most cost effective manner. Does it make Hotels irrelevant? What about Uber and taxi drivers?
I believe that services like Airbnb is an alternative to traditional travel accommodations such as hotels, however it is imperative in making social connections. These social connections allow for communication to occur that allows the consumer to save money when travelling, but the provider gains customers when otherwise might have trouble finding travellers to stay in their homes, condos, etc. I believe that Airbnb is geared towards this specific market as mentioned but it has the opportunity to become even as popular as uber. In my experiences and perspective, Uber has become a strong competitor for taxi companies and is becoming the norm. Uber to many of my friends and co-workers is an obvious choice when in need to get from A-B. However, I believe that Uber fails when one is considering to get somewhere farther than within the cities limits or near by cities. Travelling to the Pearson Airport, for example, from Waterloo would seem odd to use an uber since a taxi company is perceived as being more credible. With this in mind, taxi companies are still needed and should feel threatened with that aspect of their services, however short distances is where the companies may appear to be irrelevant to many potential customers. Overall, I believe that those who favor such services like Airbnb and Uber appeal to those who are considered more risk-taking. Since when traveling, even short distances can put those in vulnerable situations. Therefore in order for Uber and Airbnb to appeal to more potential customers, they should present themselves as being credible, safe and reliable.
ReplyDeleteI definitely do not think these services make hotels or taxi drivers irrelevant, although they can pose a threat to these more traditional services, as we have seen taxi drivers experiencing in Toronto for example. I do think that these services are targeted to those who are willing to take a risk for a cheaper alternative. When booking Airbnb, you have to communicate with the host, settle on a time and hope they show up to give you the keys. It may be cheaper than hotels but the buyer takes on a risk, one that you would not experience with hotels. I used Airbnb a lot when I was on my exchange studying abroad in Europe and I was extremely happy with the service, but there were times where it was a bit disorganized and our host was late to meet us. This is why I do not think the more traditional services have become irrelevant because there are still people willing to pay more to not deal with the risk. In regards to Uber, there is that issue of the uncertainty in safety.
ReplyDeleteI think the Airbnb community benefits local economies across the world by supporting residents and local businesses and encouraging cultural exchange. Here are some statistics from their website to support this: 74% of Airbnb properties are outside the main hotel districts, 42% of guest spending is in the neighbourhoods where they stayed, Airbnb guests spend 2.1x more than typical visitors, 53% of hosts said that the income from hosting helped them stay in their home. There are definitely also strong social implications. From my experience, as an Airbnb guest often living with your host or at least having access to your host for information, you experience the culture and the city in a different way, being more immersed than if you were in a hotel or hostel. I personally have had positive experiences with both Airbnb and Uber, and support the disorganization of labour.
I think that considering the social and economic implications of these things is an especially important aspect of services and Air Bnb and Uber. The most interesting things about these services is a shift in power in the economy. Taxi companies, until now, have been able to raise initial fares and costs per mile without any real backlash, because there was no other option. With the introduction of Uber, there is competition for taxi companies now, so they can no longer simply exploit the consumers by overcharging because there no longer exists a monopoly on the market. Of course, this has negative implications for taxi drivers who are simply labourers, but Uber developed, and is successful, because of the necessity for an alternative to over-priced taxi fares.
ReplyDeleteThe same can be said about Air Bnb. For the most part, hotel rooms are outrageously expensive and don't generally lend the traveler much space. Air Bnb has provided an efficient, and often better, alternative in which travelers are no longer funding major corporations.
I don't think either of these services will render taxis or hotels completely obsolete, but they do show resistance to the way capitalism currently functions and exploits people. These services also provide cheaper alternatives to those looking for them, as well as a way for people to make some extra money.
I like Alannah’s point about regarding backlash. Services such as Uber and Air Bnb have created an alternative for people when it comes to taxi and hotel services. It creates competition in these two fields giving the consumer a bit more power through them having options. I don’t think these new alternatives will put their competitors out of business; however I do believe taxis and hotels will have to accommodate their business to these new services. I feel like these new services are good for the economy. It will help balance the economy by giving the general public new ways to generate income.
ReplyDeleteI think that companies such as Uber and Air BnB challenge the higher powers that are in place, such as taxi companies and Hotels that have previously has total control over these markets, and this is partially the reason for their success. Uber and Air BnB are offering alternatives in service related markets, where there is a constant demand. In terms of economic implications, these services provide users with an alternative. An alternative that in many cases is chosen as these companies continue to grow at substantial rates. I agree with you Malik these services do offer a new income, further growing a sustained economy.
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