The vehicle-for-hire war is taking on apocalyptic undertones, and very close to becoming a mortal combat between the traditional taxicab industry, and the modern-technology-based car sharing service, Uber. You've probably already known that for months. However, the taxi industry has made big bold statements agains their competition, including remarks from Toronto's Beck Taxi Operations Manager, Kristine Hubbard. She has gone so far as to call Uber's operations "outside the law" and "breaking the law," and calling her companies services the safe option, compared to Uber's practices. This past Wednesday, December 9 in Toronto, taxicab drivers took to Toronto's streets as usual, but refusing to pick up passengers, clogging up city streets, and even causing minor acts of violence. They even ignored Mayor John Tory's pleas to end their protest before the evening rush hour. And a video being circulated by the major news outlets shows someone identifying as a Toronto taxi driver confronted an alleged Uber driver in his Honda Civic, pounding on the window and hanging onto the door as the Civic attempted to get to safety, and was (thankfully) chastised by Cynthia Mulligan for his actions. This man even likened Uber to ISIS.
This is the retold tale of old versus new. The once mighty video rental company, Blockbuster Video, is no more, in favor of illegal downloading, DVR, Video-On-Demand, and over-the-top streaming services such as Netflix and WWE Network. The conventional "snail" mail service has diminished greatly in the age of email, social networking, VoIP, and video conferencing. The war between the two vehicle-for-hire services like the story of the young lion battling the old lion for leadership of the pride.
My opinion is clear: I support Uber and its right to operate in the business model that they currently have. It's not that I don't support the taxicab industry, but seeing the events of today including the video from above, taxi people are getting desperate to the point where they are digging their own grave. I sympathize with the plight of the many taxi drivers out there whose livelihoods are in question because the a wave of technological transition has finally hit this industry. But that also means that the taxicab industry needs to find a way to stay relevant throughout the years if they want to stay in business.
Formerly working as a driving instructor, I know that working as a driving instructor or as a cab driver is expensive.
First of all, the car has to be good working condition with no exterior damage. The more you're on the road, the more likely an incident may happen, which even in a minor situation, is costly. Plus, who would want to get into a taxicab whose fender is out of shape?
Second, the money you spend on maintenance is much more than the average person who drives from work to home, again, because they are out on the roads a lot more than the average joe.
And third, perhaps the biggest thing frustrating cab drivers is the yearly licensing fee each cabbie and driving instructor must pay the city in order to operate. To start, a license to work in the City of Toronto will cost $648 (depending if you have your own car or a company car), plus another $329 per year after that. Cabbies are frustrated because Uber does not have to pay this fee. Uber does not identify as a transportation service, but rather a technology company whose app connects users to drivers who are partnered with their company; this is a part of the rhetoric from the taxi industry where they claim that Uber is not licensed to operate, and are not insured, therefore, unsafe and unreliable.
I very much sympathize with the taxi drivers when it comes to the licensing fees. I found it a burden to pay for my Toronto driver's license fee each year, especially since I had to pay in December when business slows down, and having less money to spend on Christmas presents for the family is always a bummer. I would have loved to not have to pay that fee. I'm sure that taxicab drivers share the same feeling. While it is not very fair that taxis have all that jazz to go through while Uber reaps the benefits of a legal loophole, Uber was very smart to exploit that in order to help their partners.
I have a friend who is a partner driver with Uber, and gained a lot of insight from him. "John" actually gave me the opportunity to explore his Uber file in the first couple of months of his partnership with the car sharing company. I saw how much he made, how he got paid, their business model, and all the documentation he had to submit to Uber to become a partner. He has all of his documentation in order. He has his full driver's license and a clean driving record. "John" has his own insurance, as well as commercial insurance. Uber's insurance covers him and his passengers well. One of the things he really likes about Uber is he feels safe when picking up his clients. "John" knows that his passengers will not cheap out on him, since in order to book a ride, one needs to have an active credit card that has enough funds for the ride. Plus, signing up for the service will not complete unless you have a credit card. As a result, he handles no cash, so that virtually removes the chance to be robbed. Also, as a driver, he can pick and choose who he wants to pick up, which minimizes the chance that a total stranger will rob him. While the money he made could have been better, it was at least good enough to pay his monthly dues for his car, and cover some living expenses. And, he doesn't have to pay the city for a taxicab license. These are the factors that make Uber an appealing alternative for passengers and drivers alike; even a former taxi driver union boss is now driving for Uber, and likes it.
While I do not have experience taking an Uber ride, I have many friends who do, and are extremely happy with their experience, mainly citing the lower cost, the safety of the transaction, and the safety of the ride itself. Taxi companies have kept up the notion that Uber is unsafe because they don't have to go through a cab driving course mandated by the city. While I very much respect that part of of the argument, by my experiences riding in cabs, and sharing the road with cabs, the City of Toronto's cab driver course maybe one of the most ineffective driving courses ever offered. Why? In my opinion as a former driving instructor, taxicab drivers are some of the most unsafe drivers in the city.
To name a few of those unsafe actions, many of them overspeed, make illegal and unsafe turns in order to be the first to pick up a passenger, weave through traffic in an attempt to save time (which only amounts to about 10-20 seconds), and stop too closely and tailgate other cars they deem to be too slow, even though they are driving at the proper speed limit or with the traffic flow, however slow or fast it may be. In basic driving school (or at least a legitimate one), these are actions you are told not to do because of its danger. I'm sure there are Uber drivers out there as well who are not following proper safe driving habits and may be aggressive drivers. But I would hope someone with mandated training and proper licensing by the city of Toronto would be safe for their passengers, themselves and the others they share the road with, especially because I literally place your life in the hands and feet of another, paying them money to get me to my destination alive.
Where is Uber in all of this? Quietly going about their business. And this attitude is what is making them look good in the eyes of the public, as the cab drivers seem to be shooting themselves in the foot with their questionable actions.
Jerry "The King" Lawler referred to the legendary Wrestlemania match between Hulk Hogan and The Rock to the battle between the old and the young lion. Sometimes the young lion kills the old lion and becomes the new lion king. Sometimes the old lion is able to best his adversary and remain leader of the pride. Can these two business models work well together, or will one of these companies suffer a fatality like opponents of Mortal Kombat's original Sub-Zero getting their head and spine pulled off their body? It seems like one of these sides of going to die a painful and bitter death, and the aftermath of this war will reverberate for years to come.
What are your opinions? Leave a comment! Thanks for reading!
Lex Tan
http://www.lextan.net/2015/12/10/round-round-get-around-i-get-around-how-uber-is-winning-and-how-taxicabs-are-losing/