Monday 5 October 2015

To Uber or not to Uber

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.

3 comments:

  1. I wouldn't count on that airport work lasting more than a day. Canberra Airport is establishing a parking area for Uber cars. When they enter the area, the GPS notes it and assigns them a place in a virtual queue. They get the first jobs, rather than any driver hovering about in the Caltex or wherever.

    When the ping comes, they drive to the Express pickup zone to collect their passenger, with ten minutes before the parking fee kicks in. Just by using the holding area, any job they get will have the airport charge added on to the fare.

    All handled by technology, cash free.

    ReplyDelete
  2. How do you actually request an Uber pickup at the airport? When I zoom out I can often see a few Ubers waiting near the service station. But when I zoom in they disappear, and I cannot select any location within the airport environment as a pickup point.

    ReplyDelete
  3. How do you actually request an Uber pickup at the airport? When I zoom out I can often see a few Ubers waiting near the service station. But when I zoom in they disappear, and I cannot select any location within the airport environment as a pickup point.

    ReplyDelete