Friday, July 10, 2015

SMRT NSEW line breakdown / disruption 7 Jul 2015 (Uber)

What's different from this 2015 major disruption and the 2011 disruption is there is an additional alternatives to bring commuters home other than taxis - UBER.


Although scrutinised by some, personally I think it is a good idea as it very effectively match demand and supply using technology. On period of high demands like Friday, Saturday night, their Uber X (sedan car), Uber XL (MPV) and Uber Exec (luxury cars) inject in more supply to meet the demands. 


It could be a little more expensive but whats a few dollars extra compared to standing along the street for half an hour or more trying to get a cab . Hence its perfect for people who are willing to spend money to get out of the situation (of can't getting a cab). I am sure there will be some who will be willing to wait an hour for a cab, but that's not what we are going into,

Whenever there is an high demand, Uber charges a surge depending on how demand exceed supply. The surge is a multiplier which multiply to the actual amount that you pay on a normal day. For example, if your ride from town to Clementi cost $20 on a weeknight without surge, and the surge from town on weekend nights is at 3X, you will need to pay $60 for the same ride (same distance, same time taken)

Back to the disruption on 7 Jul 2015, naturally, without the trains services there is a extremely high demand of cabs at all the train stations.
With no trains, extremely high demand and people wanting to get home quickly, surge escalated upwards quickly to 5X or 6X. 

While its crazy to pay $120 for a ride home, for some people who critically need to be at a certain place on time, its a way out for them, For example, if you cannot afford to take urgent leave and you need to report for night shift duty at 10pm. Or you need to pick up your child before the childcare closes. Or maybe you are super tired after 20 hours of work and just want to get out of the situation,

Comparing back to 2011 disruptions again, in 2011, you are left with no choice (even when you say $200 in your wallet which you are willing to spend on taxi). All you can hope is to call and call again taxi companies and hope they can get you a cab and although you don't believe that you will get a cab after looking around you, you will just suck thumb and keep calling. Phone bill goes up too! 

Hence Uber provides a solution to what used to be a 'no choice but to be stuck there' situation. You don't have to pay or use uber if you don't want to, but for those who are willing to pay, it's just a few clicks on your smartphone away.

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