Quote:
Originally Posted by MULTIPLEX
What is Über? Some sort of taxi service?
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It's a taxi alternative. Users download an app for their smartphones which is available on both the Android Marketplace and on Apple's App Store. Once initialized, users can either make themselves available as ride providers or to use the app to look for a ride.
If you choose to be the ride provider, you work for Uber as a driver for them with your own vehicle but on your own time. When you make yourself available to be "on-call", other users of the app looking for a ride will be able to see who's the nearest ride provider. You type in your pick up and drop off locations, the app will calculate the fare, the rider will choose to accept or decline. If accepted, the provider picks up the rider and carries out the taxi service.
Transaction of payment is completed through the app as well. No exchange of currency or use of credit cards are done in-person. Uber retains a fee, and the rest of the fare goes to your bank account or however they set it up for the provider to get paid.
The biggest problem with this business model though is that most users are completely oblivious of how their own car insurance policies would respond if there was an accident. Uber claims they have insurance in place, but it's worded to protect themselves as a company and does not hold itself responsible for the actions of their "volunteer" drivers.
So in other words, whether you use Uber as a driver for them or as a passenger looking for a ride, if an accident happens, it's likely that neither person will be properly covered. For the person who owns the vehicle, the reason why their own insurance won't cover an accident is that working for Uber would have the usage classified as a commercial exposure and most people have a policy written under the personal lines side of the business. The type of coverage (and premium charged) is very different and inadequate for your average joe to be using their own vehicle for Uber purposes. So if you get injured (or worse) while riding with or driving for Uber, you're likely going to be left on your own with a huge loss if an accident happens...