The Gig Economy: How Uber impacted the London taxi industry

Abstract

This research project assesses the impact that the gig economy (specifically Uber) has had on the London taxi industry. This is a highly contentious and current problem that is affecting various stakeholders in the market. Uber has generated various controversies, with workers’ rights, regulation, unfair competition and their pricing strategy being key issues that are investigated in this project. This research project will focus on how the London Black Cab and consumers have been effected by Uber. Through the use of interviews and questionnaires the key issues that these stakeholders face are addressed.

Research found that the entrance of Uber has significantly increased the overall number of taxis in the market, causing a reduction in the market price. The impact on consumers is that there is now more choice when requiring a taxi, as well as cheaper fares for journeys. Black Cab drivers, on the other hand are incredibly frustrated by the introduction of Uber that has eroded the amount of business that is available and has increased congestion in parts of London.