According to Uber’s blog, the median pay for an uberX driver is $90,000 a year in New York and close to $74,000 in San Fransisco. That average pay is not surprising for a company that is rising north of a $12 billion valuation. Uber, based in San Fransisco utilizes an app that people can access to request a ride. The company then uses an algorithm to find the nearest car to offer consumers fast and efficient drive times. Uber is disrupting the car service industry in more than one way .
With the head to head battle between Uber and traditional taxi companies that still rely on the outdated medallion system, Uber could become the new gold standard in taxi-like services. The medallion system, a piece of metal that was originally placed in NYC to help regulate taxis and maintain a high standard of service has continued to rise in price for each new plate. Uber does go through a background check and looks at the driving history of all potential drivers prior to hiring and maintains a rating system for all drivers to ensure a quality experience.
The potential for Uber to be a $12 billion dollar company is not unrealistic with potential to enter different markets. One idea is Uber offering a mode of transport for planes and boats, giving customers who live in cities along the coast or in areas where an hours ride on a plane would be more efficient. Although unlikely in the near future, there are some more realistic road maps Uber can venture down.
One is Uber could also enter the same-day delivery service that companies such as Google are experimenting with. Using the same algorithm, drivers nearest to certain retail locations could just as easily deliver various goods to consumers within the same day of purchase along with picking up people.
What prevents Uber from being available in every city is various laws and city ordinances that have been in place to protect existing cab companies. The idea that a Uber drivers set their own hours, make money on the side or as full time of their choosing and all done in a car that those drivers already own is very enticing to partake in. And with a potential $90,000 income for drivers, Uber looks like it’s here to stay for a long awhile.