Linthicum, MD – Uber accidentally cost its company $150,000 in Maryland over the past three months. The transportation company signed a contract with the Maryland Board of Public Works in order to provide transportation to and from the BWI Marshall Airport. However, the airport fees were meant to increase the cost of the transportation.
Uber was meant to increase its prices from $2 to $2.35 for the booking fee, which covers the operating costs of the transportation vehicles, regulatory costs, and safety initiatives of the company. However, the price increase, which was meant to occur between March and the beginning of June, had failed to be in effect in the greater Maryland area, costing Uber $150,000.
Uber’s transportation services stem from the increase in smartphone use. Internet consumption grew by 78% between 2013 and 2015 and as a result, Uber has become a more popular transportation system. The ease with which consumers can access transportation through the app is what makes the company so popular and its low expenses in contrast to the high expenses of modern taxis is another explanation.
To access Uber, the customer utilizes the app on their smartphone by requesting a ride through the application. Then a driver who is nearby will accept the request and the app on the customer’s smartphone will reply with an estimated arrival time in relation to the driver coming to pick up the customer. The Uber app additionally notifies the customer when the driver is going to arrive so the customer is prepared for pickup.
However, Uber comes with its own conflicts as a new company. The happenstance that was exclusive to the suburbs of Maryland was not the first time Uber has fallen into trouble financially.
Over the course of three years in New York up until November 2014, the company was meant to reimburse drivers with $900 after a “major financial oversight” in which the company “collected tens of millions more from New York City drivers than it was supposed to…”
The introduction of Uber in urban and suburban areas has been beneficial to consumers. However, only time will tell if the benefits of the company will continue to drive forward or if it’ll reverse financially for consumers and the company alike.
