Uberization

Uberisation is a transition to an economic system where agents exchange under-utilised capacity of existing assets or human resources (typically through a website or software platform), while incurring only low transaction costs.

The term is derived from the company name "Uber". The company developed a mobile application that allows consumers to submit a trip request which is then routed to Uber drivers who use their own cars. The term refers to the utilisation of computing platforms, such as mobile applications, in order to facilitate peer-to-peer transactions between clients and providers of a service, often bypassing the role of centrally planned corporations. The model has different operating costs compared to a traditional business.

Background
Uberisation has been made possible by the development of digital technologies developed in the 20th and 21st centuries. Business organisations such as Uber, Grab, Lyft and Airbnb enable potential customers to be put into direct contact with potential providers of a service. The phenomenon of uberisation is characterised by the elimination or quasi-elimination of middle man roles.

Uberised business formats are characterised by the following elements:
 * The use of a digitalised platform enabling peer-to-peer, or quasi-peer to peer transactions
 * Minimising the distance between the provider and customer of a service
 * The use of a rating system for the quality of the service provided by a provider

Examples

 * Transport (displacing taxi companies such as ComfortDelGro and international equivalents):
 * Uber
 * Grab
 * Retail
 * Carousell
 * Lazada