Uber Elevate Pt.2: The challenges

Continued from our last article, (https://www.dhirubhai.net/pulse/uber-elevate-pt1-background-brian-trappe/) even though the service is very appealing, there are still a few factors that can derail the progression of Uber’s plans. Firstly, there will need to be new legislation put in place regarding safety and operation, like autonomous taxis there will be legislation regarding operation distance, safety equipment on board etc. Without the legislation it will be impossible for the fleet to start service, therefore legislation may be a stumbling block for Uber in the future. Secondly, with more aircrafts in the air, air regulation may require new training and protocols to ensure safety. It is likely that air regulators will need to be trained in terms of how to coordinate these aircrafts and drivers of these aircrafts might need to acquire special licenses. These are all unknowns yet are critical to the service’s launch and therefore could push back the launch date.

Assuming all goes according to plan and Uber Elevate is a success. The expansion of the service may not go as smooth as the public expects. Since it would require Skyports to land the vehicles, Uber would need to build them in every location they plan to expand, which will slow down their expansion plans in the future. The cities they plan to expand to must have sufficient land to build such infrastructure and the phenomenon of sub-urbanization makes metropolitans such as Hong Kong harder for Uber to expand to due to the lack of land available. Also, other cities may not be willing for Uber to enter into the local market as it will take jobs away from local taxi drivers. Different to Uber’s first service, taxi drivers can not simply join Uber and start working, since is an aircraft their skills do not transfer. Meaning the pressure from local taxi drivers and related unions may deter local governments from giving Uber the green light.

Uber Elevate will no doubt be a hit in the market, but it doesn’t mean traditional taxi services will be redundant. A major advantage for traditional taxis is that it can precisely take the customer to its desired destination, air taxis must land at specific locations and there could be a chance that the landing spot is not close to the desired destination. Furthermore, air taxis are less attractive to those who live in areas without a landing spot as it would be more inconvenient to go to a landing spot and then travel to their desired location.

All in all, Uber Elevate will no doubt take the transport industry by storm. But despite all its great advantages, there are still major roadblocks that can delay the launch of the service and disadvantages that current levels of technology can not yet provide a feasible solution to. Therefore, it can be said that Uber Elevate will be great for the transport industry but it will not takeover and make traditional forms of transportations redundant just yet. 

Brian Trappe is Managing Director of Axiom Technology Headhunting in Hong Kong.