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Monday, September 14, 2015

The Taxi Industry Destroyed Themselves

The taxi industry often blame Uber for destroying the taxi industry. What we see is that Uber improved the taxi industry. Taxi drivers are now accountable for their personal actions. They have to give service, or risk customers jumping ship to Uber, Lyft, Sidecar and other ride app competitors.

How many times have we heard that ridesharing apps are killing the taxi industry? Too many times to count. Furthermore, taxi drivers are losing out hundreds of dollars per driver, per night. Taxi drivers are still making good money. In contrast, taxi drivers may not be making a fortune where they can go out and start side businesses. Their earnings are tamed, especially based on customer service rendered rather than them just giving rides and expecting guaranteed tips.

Taxis were once entitled to treat people poorly. Their excused followed an entitlement mentality; deal with this service or get out of my taxi. Now with this attitude, taxis can lose their valuable business.

Uber improved the overall transportation business. People who normally take city transit services can use these daily rides in conjunction with ride apps. Take a ride home on the train, and then request an Uber ride home. Or better yet, abandon the wait for a bus running late and get an Uber.

What did Uber actually destroy? It was once nearly impossible to get a ride on a busy holiday night. Good luck finding a ride on past New Year's Eve events. Nevertheless, Uber transformed the taxi industry into an accountable organization where customers now possess control. Don't like your taxi service? Tired of waiting to get a ride to the airport? Taxi give you an attitude? Taxis don't want to pick you up near a specific neighborhood? Request an Uber.

The common arguments are that Uber created ghost valuations ($70 billion and counting), hurt the taxi industry (improved accountability) and made the roads an unsafe haven. These opinions are biased opinions directed at an industry that gave people the freedom to choose their rides. Convenience, good customer service and savings won the battle. AirBNB fills the weekday price gap, whereas Uber gives all requesting clients an opportunity to get a ride at anytime, almost anywhere

The taxi industry destroyed their own business. They made excuses to drive people. They treated customers poorly. They have conversations with people other than their customers. Refused to drive customers to slow areas. With the taxi industry, basic service is common. It is not your typical 5 star service that most ride app drivers are committed to giving, or else they risk potential deactivations once overall ratings dip under minimal requirements. Uber reward their drivers with the freedom to choose their schedule. The majority of drivers understand their independent contractor status.

Most ride app drivers are okay with being independent contractors. They understand their freedom to choose work areas and hours, which these decisions won't influence personal endeavors. Don't want to work? Then, stay home. Plan to work while performing errands? Go online. Want to give many rides? Drive within busy areas until you feel you are ready to rest. Pick your journey.

If anything, Uber improved the transportation industry. Taxis are forced to improve their overall service or lose business. Most taxis expect traditional tips, but customers are getting smarter to choose alternatives once there are breakdowns in customer service. If anything, overpriced fares and poor customer service alerted the ride community to take notice and choose ride apps such as Uber, Lyft and Sidecar.

Would you trust a taxi to deliver you to an important job interview? An important college final exam? Business flight? Ride to restaurant to meet a date? Ride home on New Year's Eve? Uber does this for clients daily, while treating these people like family. Taxi apps won't guarantee business; it is customer satisfaction that matters most.