My Week 2 Discussion

My Week 2 Discussion Capitalism and Socialism: Case Study: Uber Uber is demonstrating a new business model; an on demand model. According to an on article on Uber leading the economy of the future, the author wrote, “The success of Uber and of companies with an Uber-like business model is particularly noteworthy in the context of a global economy struggling with slow growth. Technology is unlocking these opportunities. In particular, mobile applications are enabling start-ups to aggregate sufficient demand to support this new business model, often by capturing unrealized value from assets these start-ups do not own. But even when new infrastructure is required, needed investments are lower, which reduces start-up costs and time to market”, (Walker Smith, 2016). Uber faces many challenges within numerous countries and the egalitarianism of these countries economics. Uber hires their drivers as independent contractors so that they do not have employee status. According to an article in Time Magazine, Uber is a $50 billion dollar company that is able to profit by passing the costs of running a business onto the drivers. (Steinmetz, (2015). Uber only takes 20 percent of the fee. Uber does require background checks, valid driver’s license, and car insurance. (Mashable, 2014).