Saturday, 14 June 2014

Taxi Industry revolt !

We live in an age when someones bright idea can make them a billionaire - and usually the wizardry of communications has a role in the plan.   What is called the " Uber " method of obtaining a taxi has burst on the world scene and is now operating in 128 cities in 37 countries - and it is causing huge protests from conventional cab companies.

It revolves around installing the Uber app on customer's smartphones.  When they need a taxi this app directs the call to the nearest private car owner who is willing to use his or her car as a private taxi.   The customer nominates the destination and tracking technology determines the distance travelled and calculates the fare at a much lesser rate than that charged by the traditional cab fleets.  At journeys end, the app simply extracts the fare from the customers bank account.

The " Uber " method is now operating  in London, Paris, Madrid, Barcelona, Berlin, Rome, Milan - and fast spreading to other cities.   It walks a legal tightrope because in most countries the taxi industry is strictly controlled.   Obtaining a cab license is costly and drivers must undergo security checks and in many instances, pass a knowledge exam on city streets.  They are also required to wear a uniform and obey a code of conduct.   None of these things apply to private cars and drivers taking fares from the legitimate taxi industry.

The big draw card for many people is the lower cost cab fare.  Another is the ease of having a cab arrive without the hassle of waiting at a cab rank at peak times when there are long delays.  But this also comes at a price.   When calling for a conventional cab there is the expectation that the vehicle will be a colour coded vehicle of a model used in taxi work and that it will be driven by a company employee who has been checked for driving skill and city knowledge.   It is expected that this cab will be both clean - and safe !

The conventional taxi industry tends to refer to the Uber competition as either " Pirate " or " Gypsy " cabs.   They will be a mix of all kinds of vehicles of any age and condition.   There is no guarantee that they are in safe working condition, nor that the person driving has the skills to navigate busy city roads.   Most conventional cabs require a photo identification of the driver to be on display.   The age, sex and skill of the person driving a Uber cab is a complete mystery.

The Uber revolution is fast reaching a turning point.   There is no doubt that it is taking an increasing share of business from the conventional taxi companies and if this continues we will see these fleets diminish.   If we move to a deregulated industry the certainty of cab fleets will be replaced by the whim of independents who chose to work, probably only at times when the pickings are greatest.

Then there is the safety aspect.   Many young women will be hesitant to get into a car with an unknown driver late at night.    It stands to reason that sex deviates will see this emerging industry as " opportunity " , specially when the ease of phone hacking can allow a call intercept to reach the customer first - and impersonate the real Uber cab.

It is unlikely that both the vast conventional cab fleets and the Uber revolution can survive side by side - unchanged.  Both city and state gain revenue from their charges for cab licenses and fees and in exchange they provide security of tenure - which is now being invaded.    It seems inevitable that some sort of vehicle and driver registration will be imposed - and there will be a need for vehicle inspections to bring Uber vehicles to an acceptable standard.

It is surprising that the Uber concept has got this far.   The main danger to it's existence is the fact that it evades a lucrative form of taxation by way of licensing of conventional taxi fleets - and those that come between governments and their sources of income - do so at their peril !

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