Uber vs. Taxi

Uber vs. Taxi

One of the most biggest applications for smartphones, Uber, has been making headlines all around the world. It is not only one of the biggest apps… it is actually changing the way transportation works. Uber is a driving service that is provided to people using there proximity.

There are two uses for Uber:

  1. Get a drive

  1. Make money driving.

The recent problem that has been facing all the taxi services around the world is that these Uber drivers have bypassed all regulations that have been placed for years. Uber drivers do not use taxi insurance, and they also do not pay for the rental of a “taxi plate”. Taxi plates in Ottawa range from $1200 – $1600 a month… that is a lot considering you are still paying gas as well. Why would anyone drive a Taxi vs. Uber? Let us go more further into this…. if one wanted to become a driver for Blueline, they have to pay for a course and it takes a couple weeks to get your proper licensing. Uber… all you need to do is have insurance, and download the app. Simplicity always wins over complexity when it comes to business.

Taxi drivers are now complaining and protesting against Uber drivers. It is driving there business down a lot as Uber continues to grow. Some taxi drivers are even becoming Uber drivers instead… some are even doing both, which is breaching the general taxi contract (you are not allowed to operate another taxi service when you are active with another). The problem with these taxi drivers is that they are no united. In Ottawa for instance, I notice Capital, Blueline, Airport… these are all separate companies. Separate companies with a common goal in this case doesn’t matter. The fact is these companies are local to Canada. Uber is worldwide. Uber is available in more than 50 countries.. under one entity. They are worth billions, they operate internationally, and they can afford the best lawyers. A small taxi service cannot compete with giants like Uber due to lack of funding. Uber has been known to find loopholes and continue to operate legally.

What hurts these taxi companies more is that they are using vandalism, and becoming physical to make there statement. We always see the news filled with taxis following Uber drivers and kicking there cars, or swearing at them. The taxi drivers are disappointed because the city is allowing them to continue to operate despite the lack of insurance, and the licensing.

I personally never take an Uber but I heard mixed reviews about them. Some say it is much more quicker and cheaper than a regular taxi… and some say it was the most worst drive ever. Some felt in danger when they were in the vehicle and some always had to use a GPS to find out the location whereas a taxi driver would know the shortcuts.

The argument for tax purposes with Uber does not work. Uber only accepts credit card…. no cash or any other forms of payment. With credit card only payments, there bank accounts are easily monitored to see cash flow.

The cons of being a general taxi driver is mainly the costs…. it costs over $200,000 to own a taxi plate.. and minimum of $1200 to rent one in Ottawa, and then you have to do a taxi licensing test as well.

I do not see Uber going anywhere or have there business declining. They are already working on other projects and have released UberEats which is a service that delivers food from restaurants which do not usually deliver. The people behind Uber have big goals and there worth continues to grow as time goes on.

One thought on “Uber vs. Taxi

  1. This is an excellent review of the situation between Uber and the Taxi industry in general.

    The sad fact is the current taxi industry is outdated, in particular, the notion you have to buy a plate to be a taxi. This whole plate idea made it a closed door old boys/family network that did not adapt to the changing technology.

    What Uber has done is shown the world technology is here, we developed an app that can make money without being regulated.

    If fact Uber, without technology, is a family member or friend providing a riding sharing/taxi service for free.

    With app technology and an idea long over due, we now have a riding sharing service that connects people on the road who are will to share their ride for a fee. All Uber did was put this in an app, refined it and offered a service cheaper that the traditional taxi industry.

    I have not used Uber, and it has been awhile since i had to use a taxi, most people I know who have used Uber are very please … i have heard nothing but good reviews.

    The small companies in Ottawa did not look at the effect of Uber through out the world, and put their collective heads in the sand hoping it would disappear. Rightly or wrongly BlueLine, Capital, Airport … have or had antiquated expensive staff based dispatch systems that are not cost effective in this technologically driven world.

    I think Uber needs to be regulated BUT not at $200,000 per plate.

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