Uber is coming to Canberra. The Government is changing the relevant laws to allow Uber to operate in competition with taxis in Canberra. A great number of people have commented to me on this while I have been driving a taxi and most people are fearful and are declining to use Uber. The fears range from feeling unsafe to the belief that Uber drivers could be rapists or murderers. With Govenment regulation of Uber a great number of these fears are unfounded. Uber drivers, just like taxi drivers, will be subject to police checks and health checks and their cars will have to be insured and pass roadworthy once a year.
Competition is good in a liberal democratic capitlist society like ours. I liken the arrival of Uber as akin to the arrival of Aldi to break to duopoly of Coles and Woolworths. The introduction of Aldi forced both Coles and Woolworths to lower their prices and, as I see it, the taxi industry will be forced to lower their prices too. If not, they will die a slow death, as eventually, companies and Governments will see the advantage in going with Uber to lower costs on travel.
For at least the short to medium term, taxis will have a number of advantages over Uber in the Canberra market place. Only taxis can pick up at the Canberra Airport and at taxi ranks. In addition, most companies and Government bodies pay by cabcharge vouchers and Uber drivers will not be able to use these barter systems. I estimate that Airport pick ups, Government and company jobs, and rank work would comprise 65% of my daily work. Uber drivers will be advantaged by cheaper fares and will most likely be used by customers on long fares out to the fringe suburbs on a Friday and Saturday night.
Will I become an Uber driver? Not yet. I don't feel there is enough work going around in Canberra to justify the switch. But eventually, unless the taxi industry lowers their fares, then I will be forced to go over to Uber because, as I have mentioned before, the taxi industry will die a slow death.
