Advantages And Disadvantages Of Uber

III. Uber is a legal model and bring a huge of benefits

1. Uber operates like a marketplace model

Uber’s business model is similar to Amazon’s – an organization creates “transactional sale” and receives payments from the ones who hire “virtual kiosks”. The number of service providers is huge on this virtual market. This model helps to make full use of social resources and saves costs from warehouse rental. In Vietnam, this model is legal and developing at a fast pace. There have been several online markets such as Lazada, Zalora, Chotot, etc. Therefore, it is unfair if Uber is banned. However, Uber model is different a little bit from such marketplaces. When staying at home and accessing to Amazon, customers have plenty of time comparing, negotiating with different sellers before ordering for some books, shoes, clothes, etc. Meanwhile, when we are standing outside on the street without any means of transport, we need an instant car to pick us up to the places we desire. We hate negotiating, but we need a reasonable price along with good service. It is the reason why Uber offers four options car, according to the predefined prices corresponding quality of cars. It is clearly seen the service offerings and prices of Uber are restricted even more than Amazon or

It is really hard to compare this new model to the traditional ones because it is based on advanced technology. Instead of trying to apply existing laws, it is crucial for laws to be updated in order to have an objective look into innovations. In terms of taxes, if Uber had legal entity as a representative department in Vietnam, revenues would be exposed to foreign contractor withholding tax including VAT and corporate taxes like other services in Vietnam. As an international organization, Uber is supposed to comply with these