The uber taxi app

[simon]

I just don't understand how taxi business can be managed / controlled by an external app from an external company.

I do think that an app created by a taxi company for the use of that taxi company is the future.

The uber all will charge the price set for that city, 2 problems with this, if all the prices are going to be the same, then there will be no competition between company's, everyone might as well work on there own as a one man band and have no base rent to pay. Second issue is what if the driver takes the wrong route, I mean we all make mistakes right, if he takes the wrong route or a detour due to traffic the price will go up because the journey is longer, however the driver may wish to charge 'normal price' for the journey because he made a wrong turn by mistake, obviously this can not be done because the uber app acts as a meter and charges the customer the price for the journey and the app takes the payment from the customers bank account.

More I think about it, the uber app would pretty much destroy anyone creating a business / company in the taxi industry because everyone would be a one man band.

The taxi operators manage the calls / emails from clients and distribute jobs between the drivers who work for the company. The über app just takes away the need for an operator and a company.

Because the app finds the driver closet to you, and has no need for an operator, and the customer doesn't pick the taxi company to use the app just locates a driver closest to them there is no competition or need for a business.

Every taxi driver will just be a one man band. Thus they will need to be a cap on how many driver they can be per city.

On another note, what if a driver licences for Leeds goes to bradford or somewhere else, the app will still let him work in that area. This will cause problems too. How can it be regulated how many drivers can operate in which city....

This technology is the future, but am not sure uber is....

browneyedbazzi

Your musings don't seem to take into account the limitations imposed by the licensing regime which need to be followed in order to operate legally. If you're really interested in this topic then it would be worth reading a bit about the licensing laws for taxis (hackney carriages) and private hire vehicles.

Vehicles and drivers are licensed to operate in particular districts (although this may change pending the outcome of a review by the Law Commission which has been going on for the past couple of years). And private hire drivers/vehicles can only take jobs that are pre-booked through a licensed private hire operator (whether via an app or otherwise). There are costs and quite a bit of record keeping required to be a PH operator which puts a lot of people off being a 'one man band'. Many drivers will always prefer not to have to bother with an operator licence and to pay a regular base rent to have the requirements met by someone else. Also, some districts do have controls on the numbers of vehicles they will licence but others choose not to set a number but to let market conditions control the number of drivers and vehicles.

szam_

I don't know much about the software, but there are easy resolutions to both problems.

[simon] wrote: »

2 problems with this, if all the prices are going to be the same, then there will be no competition between company's, everyone might as well work on there own as a one man band and have no base rent to pay.

If you had this software to run on a company by company basis, i.e. your taxi firm pays a license fee amount to run this software with it's drivers, you would set your own rates.

Second issue is what if the driver takes the wrong route, I mean we all make mistakes right, if he takes the wrong route or a detour due to traffic the price will go up because the journey is longer, however the driver may wish to charge 'normal price' for the journey because he made a wrong turn by mistake, obviously this can not be done because the uber app acts as a meter and charges the customer the price for the journey and the app takes the payment from the customers bank account.

I would imagine the fare, or meter, would be based on the calculated "fastest" route rather than the route and/or time taken - rates would go up or down dependent on time/traffic levels, i.e. it'd be higher during rush hour - work out the fastest route and how long it should take based on current traffic, charge that rate as roadworks/incidents aren't the customers' fault - gives the customer the best deal possible.

This also wouldn't eliminate jobs in people taking calls from customers. Not everyone is going to want to use this system. What if someone has lost their phone, or prefers to pay cash, or hops in to a cab outside a pub/bar/venue? They would still need to know where their drivers are and let them know of other jobs outside of the app, unless of course you run your company solely on the basis of this app, which at this point in time would make zero business sense.

[simon]

If you had this software to run on a company by company basis, i.e. your taxi firm pays a license fee amount to run this software with it's drivers, you would set your own rates.

The uber app works for its self and any taxi drivers who register with uber. Drivers register with uber, pay a small fee, customers download uber app, customers use uber app to request a taxi, uber app contacts the driver closest to the customer with the location of customer pick up point. Driver goes to pick up customer. No need for a company to have an operator. Driver can work alone, SAMs taxi or what ever and register with uber. Ubers rates are fixed at each districts price provided by that council.

This also wouldn't eliminate jobs in people taking calls from customers. Not everyone is going to want to use this system. What if someone has lost their phone, or prefers to pay cash, or hops in to a cab outside a pub/bar/venue? They would still need to know where their drivers are and let them know of other jobs outside of the app, unless of course you run your company solely on the basis of this app, which at this point in time would make zero business sense.

Maybe some people won't / Can't use the system and prefer to use phone call, however, all the taxi drivers will surely leave the company's they work for and register / use the app still, why pay 100 a week base rent if you can pay soooo much less to use the über app.

Many drivers will always prefer not to have to bother with an operator licence and to pay a regular base rent to have the requirements met by someone else.

Getting an operators licence is cheaper than paying 100 a week bace rent, with uber, you would not have to pay 100 bace rent and they contact the customer with you, no need to advertise your business, uber connects customer to closest licences driver, who ever that maybe.

Rite now having an operators licence and been a one man band you have to work all kinds of hours to keep a good income and reputation, if you turn phone off one day you loose business and people go elce ware, how ever with über, you turn the app on when u want to work and turn it off when u want to stop work, simple. Your reputation is not effected. You will always be used when u turn on the app to start work.

With uber, everyone will apply for there own operators licence and drive them selfs, Uber handles the customers and connects them to drivers directly. Uber acts as the receptionist who currently sits in the company's office answering calls and distributing jobs.

YOUR WORK DAY

Work whenever you want, wherever you want, for however long you want.

Be your own boss. Own your own car, manage your own expenses, keep all your earnings. There’s no controller telling you what to do or how to do it. Have other personal commitments you’re juggling? Just work your Uber shifts around them, it’s easy. You receive regular updates on the best times and places to work so you can make the best decisions for you.

Tiddlywinks

I'm confused OP... You seem to be a big fan of the app, almost like you're promoting it... so what's your query?

[simon]

Trying to work out how long it will take to reach Leeds and destroy all our taxi businesses....

DKLS

Would be great for Leeds, I have used Uber 5 times now in London I won't be using a black cab again, I have had fantastic service 7 series or s class for little more than a black cab and its so much easier not having to have cash on me and reassuring that I get texted the numberplate and picture of a driver.

Adapt or die cabbies, disruptive technology has hit a number of sectors, its now the taxi sectors turn to have their model turned on its head.

w211

I'm an Uber driver, I use Uber myself personally for rides, and I'm also a one-man band with an operator's licence.

For me, Uber, works well. I can work for them, around my existing clients. When I'm quiet, I can simply log on to Uber and work.

Ok, they take 20% of the fare, but that's not a problem, since that pays for the card processing fees and management, they deal with any queries the customer may have, use of their despatch software, use of their phone with data connection, and the marketing and advertising they do.

Also, at the moment, Uber in London, only accepts 4/5 door saloons and hatchbacks. No estates or people carriers. So there's still a market for other firms.

marlot

I just installed Uber to check it out. It seems that I can't do so without giving my credit card number. No way am I doing that without even knowing if the service operates in my area.

googler

[simon] wrote: »

On another note, what if a driver licences for Leeds goes to bradford or somewhere else, the app will still let him work in that area.

The app will, but the licencing authority won't. Such as;

"Licence Holder - means a person who has been granted and holds a current and valid licence from the Council in terms of Part II of the Act to ply for hire with a taxi or to operate a private hire car or drive such vehicles"

If you don't have a licence for Bradford, you can't 'ply for hire' in Bradford. If you have a licence for Leeds, you can 'ply for hire' there.

mro

In the long term it doesn't bode well for standard Taxis and will hit them hard.

Could create inevitable race to bottom, as Uber model is easy to replicate and there will always be lots of people wanting to do bit of extra work.