In recent days, the news has been released that the Uber platform will also be introduced in Romania. Since various rumors are circulating about what this application is and how it is used, we have decided to provide some clarifications.
Uber is an application in the form of an online platform that connects people who want to travel by car but either do not have their own car or, for various reasons, want to use a "personal" driver.
To become a driver on this platform, registration on the site is required. This registration is verified by the company and, after providing all the information and proof that the person meets the requirements of a driver (driver's license), that person is accepted as a driver. Each accepted person will receive a smartphone with the driver application pre-installed, so they can start working immediately. The driver sets their own working schedule, earning proportionally to the work done. The cost of a ride is calculated independently by the application, based on distance and traffic conditions, and payment is made directly via the internet, by withdrawing the corresponding amount from the client's card. The driver receives a share of the money (80%), the rest remaining in the company's accounts.
On the other hand, clients use the application on their smartphone, log into their client account, enter some data about the destination, and wait for a driver to be announced who will take them to the desired point.
The Uber platform was launched in 2009 in the USA, gradually expanding to over 45 countries worldwide, especially in Asia-Pacific, but also in the Americas and Western Europe. Since the platform connects drivers and clients, it has come into conflict with taxi drivers, who feel threatened that they will lose customers. Additionally, Uber drivers do not have to pay as many taxes and are not required to have licenses or other permits.
In Europe, the reaction of taxi drivers has been much harsher, even leading to street protests. Regulations in the field have been changed in many countries, while in others discussions and negotiations are still ongoing.
Regarding the success of such a service in Romania, opinions have been divided so far. However, the trend is to reject the application, and this is due to several reasons that differentiate us from Western European countries:
• Firstly, the per-kilometer fare for taxi companies here is quite low, somewhere around 1.39 or 1.49 lei/km, unlike in Western European countries where the fare is much higher.
• Another reason is the large number of taxis available in cities. In the USA, for example, in large cities, taxis are fewer and consequently have higher fares.
• Romanians' openness to such novelties is quite low, especially when it comes to online payments, and the fact that payment must be made using the phone is another factor that reduces interest or trust.
• The application will be introduced in larger cities with over 300,000 inhabitants, but in our country, there are only 4 such cities. In other words, there is not much room for these Uber drivers to operate.
• A final reason, but perhaps the most important, is that in Romania it is forbidden for a driver to transport people without authorization for this purpose. If these drivers are caught transporting passengers for a fee, they could be fined up to 5,000 lei.
Despite this, in October 2014, the Uber Company announced that it was hiring in Romania to be able to officially launch the application.
