The Controversial Strategy Of Uber In Order To Defeat Lyft Competition

You are familiar with the level of competition between Uber and Lyft in the transportation industry in the past few years. It surprises you each time you see them sharing certain similarities in the course of providing services that will meet the demand of their teeming customers. Sometimes, you begin to imagine whether each company attends the meetings of each other board of directors where policies are formulated. Of course, this is not the case. The only thing is that one company tries to outshine the other since both of them are in the same industry.

Be that as it may, the success of every competing company will spell doom for the others in the industry. This is the major reason that every company tends to outsmart the others since market is very competitive. It remains clear, therefore, that any company that fails to put its house in order will have itself to blame. Once customers shift attention away from the company, the chapter of its doom begin to taunt it. However, transportation companies like Uber and Lyft often signal their drivers even when there is no service to be rendered. The intention, most times, is too entice the drivers to be at alert.

Besides, the companies often set some targets for their drivers in order to get some incentives with a bid to making them responsive to signals each time they come so that passengers can be attended to as prompt as possible. In addition to the above, Uber gives our as much as $500 as incentive to drivers who meet up with certain targets in certain cities on weekly basis.

Be that as it may, this incentive does not elude drivers from other cities because they have their own targets which are made known to them from time to time. It is therefore the responsibility of every Uber driver to know the target of the company in the cities they cover and work towards achieving the task if they want to enjoy the incentives.

It remains clear now that Uber has chosen to increase its fare in cities around D. C. region so as to generate compensation for drivers who in those places. Take for instance, Lyft pays its drivers over $700 in some cities especially when such a driver has just registered on their app.

For Uber to meet up, it has to make sacrifice by paying its drivers more than its competitors are doing. If you are working for both Uber and Lyft and both of them send you signal to render services at the same time, which offer will you take? Of course, you will go for the one that is most lucrative and the company with the less lucrative offer begins to go weaker and weaker in the business at .

Obviously, the weaker company might have to wind up from the industry since it has lost the strength to compete favorably with other players in the industry.Hence, its imminent end has dawned on it. As a matter of fact, we must not fail to know that the transportation industry is a place where the winner takes it all and the losers have a place only on the bench where nothing happens at all. It is those who are relevant in the field that will continue to do exploit. It is because of this fact that Uber decided to channel ways by which its drivers can earn more and give more focus to the service they render on behalf of the company. Besides, when you look at the policies of Uber, it has capacity to provide results even on the long run. It caters for the challenges that the future may bring to the industry in years to come.

By the virtue of the above, Uber paved way for massive incentives for it drivers so as to get enough of them to render services for it especially during critical situations needing prompt attention. Of course, this becomes necessary as drivers have made their grief known as to lost of wages that they have to contend with because they work for just one company. As a result of the above, the drivers see it appropriate to work for two or more companies at a time so that they can get enough profit. Of course, all they need is to open the apps of the companies on their devices so that they can get signals as they pop in. This shows that the company is on track to once again control the industry by providing satisfactory services for its teeming customers as prompt as possible. This makes such a driver build absolute trust in the company.

To these drivers, the wage they get from Uber is very low and the best they could do is to work for Lyft and other companies if they must meet up with their financial obligations. Be that a it may, Lyft has expanded the market but Uber is boosting it with creation of incentives so as to hijack the market and therefore control it. Of course, once the drivers start to get more wage and incentives from Uber than what Lyft currently pays, nothing will stop the tide from going in the path of Uber. In addition to the above, when Uber begin to allow the collection of tips by their drivers coupled with the incentives, nothing can stop them from taking the leadership position in the industry. As a matter of fact, it becomes necessary that Uber begins to see its drivers as its employees and not as independent collaborators in the business.


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