Questions For Discussion: What Are The Ethical Challenges?

2 7aquestions For Discussionwhat Are The Ethical Challenges That Uber

What are the ethical challenges that Uber faces in using app-based peer-to-peer sharing technology? Since Uber is using a disruptive business model and marketing strategy, what are the risks that the company will have to overcome to be successful? Because Uber is so popular and the business model is being expanded to other industries, should there be regulation to develop compliance with standards to protect competitors and consumers?

Paper For Above instruction

Uber Technologies Inc., since its inception, has revolutionized the transportation industry through its innovative app-based peer-to-peer sharing model. However, this disruptive approach has also raised several significant ethical challenges that the company needs to navigate carefully to maintain its reputation and ensure sustainable growth. The following discussion examines these ethical concerns, the risks associated with Uber’s disruptive business strategy, and the potential need for regulation to ensure fair competition and consumer protection.

One of the primary ethical challenges Uber faces pertains to driver classification. The company classifies drivers as independent contractors rather than employees, which raises questions about fair labor practices and benefits. Critics argue that this model exploits drivers by denying them access to benefits such as health insurance, paid leave, and workers' compensation (Rogers, 2015). From an ethical perspective, Uber has a responsibility to ensure fair treatment and compensation of its drivers, balancing innovation with social responsibility. In response, Uber has initiated some benefits schemes, yet critics contend that the classification dilemma remains unresolved (Hall et al., 2018).

Another ethical challenge involves safety and security. As peer-to-peer sharing relies on individual drivers, Uber must maintain rigorous standards for driver screening, vehicle safety, and passenger safety. Incidents of assault or harassment have raised concerns about Uber’s due diligence and accountability. Ethical responsibility dictates that Uber prioritize passenger safety, implement transparent reporting mechanisms, and promptly address safety issues (Li et al., 2017). Failure to do so not only endangers consumers but also damages the company's reputation.

Privacy and data security constitute another critical ethical issue. Uber collects vast amounts of personal data, including location, payment information, and ride history. The misuse or mishandling of this data could lead to privacy breaches, identity theft, or unauthorized use of customer information. These risks highlight the need for robust data security protocols and transparent privacy policies. Ethically, Uber must safeguard user data and ensure compliance with privacy regulations such as GDPR (Regulation (EU) 2016/679) (Custers et al., 2019).

Additionally, Uber's disruptive business model has led to conflicts with traditional taxi services and local regulators. Ethical concerns arise around fair competition—whether Uber’s aggressive tactics and regulatory evasion give it an unfair advantage. While innovation often challenges established industries, companies must balance competitiveness with legal and ethical standards to avoid monopolistic behaviors that could harm consumers and other stakeholders (Zengler & Whelchel, 2019).

The risks Uber faces due to its disruptive approach include regulatory crackdowns, legal challenges, and public perception issues. Regulatory environments vary globally, and in many jurisdictions, Uber has encountered bans or restrictions due to concerns about licensing, safety, or unfair competition. Marginalizing traditional taxi operators has also led to social conflicts, which could threaten Uber’s license to operate if not managed ethically and cooperatively with local communities (Cramer & Krueger, 2016).

Given Uber’s expanding influence into other sectors such as logistics, freight, and autonomous vehicles, the need for regulation becomes more pressing. Regulation can serve to develop standards that ensure safety, fair competition, data privacy, and labor rights, ultimately protecting consumers and competitors. Conversely, overly stringent regulations might stifle innovation. A balanced, adaptable regulatory framework that encourages technological development while safeguarding public interests is essential (Sussan & Acs, 2017).

In conclusion, Uber's ethical challenges are multifaceted, encompassing labor practices, safety, privacy, and competition. The company must address these concerns proactively to sustain its disruptive growth without compromising ethical standards. Additionally, regulatory oversight is crucial to create an equitable landscape that balances innovation with consumer protection and fair competition as Uber continues to expand into new industries.

References

• Cramer, J., & Krueger, A. B. (2016). Disruptive change in the taxi business: The case of Uber. American Economic Review, 106(5), 177-182.
• Custers, B., Calders, T., Schermer, B., & Zarsky, T. (2019). The emerging regulation of algorithmic decision-making: Challenges & opportunities. Computer Law & Security Review, 35, 1-22.
• Hall, J., Prassad, S., & Metcalf, J. (2018). The impact of gig economy work on drivers' wages. ILR Review, 72(4), 873–898.
• Li, J., Schor, J., & Hu, H. (2017). Safety, privacy, and fairness in Uber's business model. Journal of Business Ethics, 147(2), 253–264.
• Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016. General Data Protection Regulation (GDPR). Official Journal of the European Union.
• Rogers, B. (2015). The social implications of Uber and ride-sharing platforms. Communications of the ACM, 58(12), 16-18.
• Sussan, F., & Acs, Z. J. (2017). The digital entrepreneurial ecosystem. Small Business Economics, 49(1), 55-70.
• Zengler, J., & Whelchel, S. (2019). Regulating ride-sharing: Balancing innovation and fairness. Journal of Regulatory Economics, 55(3), 324–342.