Ottawa, Toronto, Look to Legalize Uber

Description: City staff in Toronto and Ottawa have developed draft regulations that would create a new set of rules for app-based ride hailing services.

Source: Tech Vibes

Date: April 11, 2016


On Friday, Ottawa City Council’s community and protective services committee voted to approve the new regulations. That means they’ll go before the entire city council for a vote on Wednesday.

If that passes, the new rules will go into effect in September. That would make Ottawa the second city in Canada to license and regulate Uber, after Edmonton.

Under the new rules, Uber and other “private transportation companies,” as the city describes them, will have to pay a license fee to operate in Ottawa. That fee caps out at just over $7,000 a year. There will also be $0.11-per-trip charge.

Both PTCs and their drivers will have to carry insurance. Companies like Uber will have to have $5 million in commercial liability and $5 million in non-owned automobile insurance. Drivers will have to obtain “suitable” insurance.

Drivers will also have to get annual criminal record checks and vehicle inspections. Companies like Uber would be required to provide proof of that to the city on a regular basis.

Taxi drivers say they don’t like the new rules and that they’ll continue protesting.

Read More.

Questions for discussion:

1. Do you use Uber or taxis?

2. What could taxi companies do to continue to compete in a relevant market with Uber?


30 thoughts on “Ottawa, Toronto, Look to Legalize Uber

  1. Tyson

    Personally, I prefer to use Uber whenever possible as it has overall always been more of a pleasurable experience. Whereas with taxis, some nights it feels as if they answer to no one and are able to get away with more due to a monopoly on most cities. I also find that Uber make the experience feel more like a friend is driving you to the bar or airport rather than just a random cab driver. Uber drivers tend to be more personable in my experience. Taxi services must find a way to change their business policy as it seems as if they became too comfortable with their situation, therefore leading them to not adapt, which allowed Uber to gain a larger market share than they ever should have. Apple app store may be a good place to start for cab companies.

  2. Alan

    I have never used Uber before, however, I think that the more regulations and registration fees that are added for Uber drivers the less relevant Uber becomes. It seems like these new regulations are just adding more taxi drivers and not calling them “real” taxi drivers. I think that most taxi companies could compete with Uber if they could find a way to really lower their prices or offer better/safer services. If these taxi companies could market themselves better and really show the greater amount of safety and value of taking taxis then Uber wouldn’t have a chance. I do think that Taxi prices are ridiculous, I went to Vancouver a couple of months ago and took a taxi from the airport to our hotel that was 5 mins away and was charged $25 plus a tip. From what i’ve read Uber taxis are almost half of that cost. I don’t think that the real issue is Uber as much as it is the fact that commuting by taxi is just too expensive. Especially here in Canada where there are plenty of other lower cost options to get around.

  3. Sherry Lu

    I would use Uber and I have nothing against it, although I have never have use Uber before. Knowing many places in North America, especially in the US, it is a common and convenient transportation for many people. Learning from the “Uber Explained in Full” video, it is cheaper than regular taxi and by downloading the Uber app, people can get pick up anywhere in the city, I think it will help a lot of people. I am looking forward to see Uber become legalize in Canada, not just Edmonton and Ottawa, but many more cities like Calgary and Vancouver. I know many taxi company will protest against this idea, but only a few taxi companies are available in one city, and I think Uber will provide people with another option and increase the competition in the taxi transportation industry.

  4. Yifan Han

    i would like to use uber when i am abroad such as america or canada, and if there is no city train or i do not own a car. because the taxi is more convenient and faster than bus. It seems more efficient and also innovative, new and exciting for this generation that spend most of their life online. However, Uber does have its security issues, as the app does not run like a company and drivers are basically contracted through the app so customers are riding at their own risk. The taxi companies screen their employees and it is their responsibility to ensure the safety of their customers so customers may still find it better to use a taxi rather than uber. Being able to track the Uber car’s location is also very appealing because it gives you a real-time estimate of when the car will get to your location, this gives people the opportunity to manage their times better and be ready on time without being late or waiting for too long.

  5. Bryce V

    Whenever I have the opportunity to travel to cities in the USA the first use of transportation for me is Uber. As a consumer it is a no brainer. Uber is cheaper, and as well a more personalized form of public transportation. There have been a couple times I was in a bigger American city, and the cabbie knew right away I was not from there, and took me on what you call a banana route. I found out later the cabbie took me on a ride that was 20 dollars more than what it should of cost. With Uber, you pick your route, agree to a fee, and get in the car, and even rate the ride for the next customer to see.(they even rate you!) The consumer for the most part is in control, not the driver. For a long time it has been the other way around. if I owned a burger company, and all of a sudden a cheaper, better tasting, better serving burger joint moved down the street I can’t just get mad and have the government ban that company, I have to find a way to adapt and transition my business to better meet the consumers demands. Taxi companies are going to have to find a way to keep up with what uber has done.

  6. Kirsti osowetski

    I have used both ubers and taxis. Because I live in Lethbridge there aren’t any ubers here it’s only taxis so that limits my choice automatically. But when I Edmonton I have used uber also. In order to stay relevant and continue to compete with uber I think taxis would have to offer incentives for people to choose them over ubers. They’d have to offer them things like coupons or money off their ride if they book a certain number of hours ahead of the time they need a cab or if they use an app or something. They also need to develop an app first of all because uber has an app and this is obviously well like by the younger demographic of people like students who use their phones for everything.

  7. Danielle Anvik

    I rarely use taxis. I think taxis are expensive, and I do not trust them enough to drive me quickly and directly to my destination. My brother scheduled a taxi recently to get to an early morning flight, and almost missed his plane because the driver forgot to come. My brother gave the replacement driver a big tip for his help, and did not pay for his taxi ride; the company did not complain.

    I have never used an Uber. I have a few questions to satisfy before I would choose an Uber over a taxi. Mostly my concerns are about safety – both in terms of safe drivers, safe vehicles and personal safety for users. I am glad that Canadian cities are requiring some level of regulation before allowing Uber to operate, especially background checks.

    I can see where Uber and other similar services are moving ahead of taxis. Rather than calling a taxi, I would appreciate just using an app to schedule and pay for service. I like the idea of knowing how long it will take before my ride arrives. In order to compete, taxi companies could use the product development strategy of expanding their services to include an app with similar features to Uber.

  8. Leah Kling

    I have never used Uber as it is not available in many Canadian cities, however, I have occasionally used taxi services especially when travelling. Typically I do not use taxi services due to the cost associated with using them and considering I would rather drive myself or have someone I know drive me somewhere, also from my experience the taxi services in Lethbridge are not overly great or enjoyable to use and sometimes you could be just as well using public transportation to get somewhere. The main reason individuals use Uber is the cost compared to taking taxis, I think the main concern of individuals using transportation services is cost and efficiency. Uber is also superior in its accessibility to its services, the use of an app to get a ride far surpasses having to call and wait on hold for a receptionist or driver to speak to you. Taxi companies could try building an app to manage the organization of its taxi drivers and thus may also be able to use information systems to increase its efficiency by organizing where its cab drivers go. Many of Uber’s cars are newer than most taxis and may also offer more comforts than an older taxi as well.

  9. Debbie Payne

    I have never used Uber and requiring the usage of a taxi is very minimal, as the only time that I would necessitate the services of either one is when I am travelling, which is not as often as I would like! I am fortunate enough to own my own vehicle, which allows me to come and go without much planning. Not having to rely on any form of pubic transit has worked to my advantage, as I am known to be a procrastinator.

    With Edmonton legalizing Uber, and Ottawa and Toronto following suit, I believe that the taxi companies may be in a position to benefit as well. The legalization of Uber will lead to the company having to comply with the same protocol as required by the taxi companies. Since, I do not require this type of service very often, I am not sure what types of enhanced services are offered. In order to remain competitive with Uber, the taxi companies need to improve their wait times immensely, as well as, offer the online booking process by the use of an app, if they haven’t already done so. By legalizing Uber, I would hope that the fares being charged to the end users would be more comparative across the board, not to mention, it will help to better protect the safety of all parties involved.

  10. Anji Sanusi

    I understand that Taxis are very expensive and not a lot of people are willing to spend that amount of money but if i was ever giving the choice to get in a taxi or get Uber, i am definitely going for the Taxi. With Uber anybody is picking you up and not only that but you will be or might be sharing a vehicle with someone and perhaps that could be someone you would want to avoid. Taxi companies can offer discount to students and offer cheaper prices. In some way a Taxi service might still have an advantage over Uber just because a decent amount of individuals will see them as safe `since their drivers go through a decent amount of training and screening but with Uber, any one could be driving.

  11. Cecile

    I have very little experience with Uber and I seldom take a taxi. In my opinion, I would think that Uber is more efficient thank city taxis because they have an app which provides quicker connections with drivers that are available, unlike city taxis you have to wait for at least 10 minutes for a reply and sometimes they wont have a driver available for you which is sometimes annoying when you are urgent to go somewhere. Compare to city taxis, Uber already has a competitive advantage in lower costs, quicker response and higher chances of getting a ride in times. The app is totally free and its possible to get a driver near you in big cities within 5 minutes, however, it is not applicable with small towns and cities like Lethbridge. As of this point, city taxis have an advantage that it is based in every city and has a wider connection with each other, in that way we can see a long term advantage in city taxis compare to Uber which has limited access in certain big cities only.

  12. Sandra Kang

    Toronto and Ottawa are looking to legalize Uber, which does not affect me here in Lethbridge. Living in cities where Uber was not available, I have not used Uber, but I have occasionally used taxis. Taxis in Canada, especially in Lethbridge, tend to expensive and extremely slow which provides users with not only inconvenience but frustration as well. I would be open to using Uber, as it is provides more convenience for me to use. Uber allows consumers to have more control of the product received, as it is a peer-to-peer service and gets rid of the middleman. Uber also provides a smarter service for today’s consumers with usage of internet, apps, and GPS. Uber also provides consumers with discounts that is shared with consumers that they can share with friends and family. With the expansion of Uber into Canada, it will take more effort for taxi companies to compete in the market. The taxi system in Canada, have not changed much since it was first established. Taxi companies in Canada, especially in Toronto and Ottawa, need to step up and upgrade to suit the needs of today’s consumers to compete with Uber to provide the connection and convenience for their consumers. Taxi companies will unfortunately have to increase their costs and/or reduce their prices to compete in today’s market

  13. Shiqi Wang

    My first experience of using Uber was when I travelled in Seattle with my friends, we are just arrived the new big city by taking ferry at night, we need to take a taxi as soon as possible to check in. However, there are few taxis in the street which is hard for us to catch one with many luggage. There was someone thinking about why not using Uber, so we just downloaded one and used it. Then we just fell in love with using it during the rest several days in the US. I do take a taxi in my daily life in Lethbridge. To be honest, it is not convenient enough for us to go around just by taking the bus on weekends without a car. Taxi can save us when we feel being lost by the world. Uber is cheaper than a comparable cab ride, since it cuts out a lot of the overhead costs that come with running a fully-licensed and regulated taxi service. Many have lauded the service as a low-cost measure to ease city traffic and speed up taxi wait times, while driving down taxi prices. Canadian cities are coming up with different ways to regulate Uber. Ottawa and Toronto have proposed plans, yet to be approved by their councils. Uber says Calgary council’s rules are prohibitive. It is not operating in Edmonton pending a provincial insurance ruling.

  14. David Zhang

    Uber says their story is all about making connections, and creating possibilities for riders, drivers, and cities. The Canadian regulatory services has been rejecting connections with Uber, but there are signs that relationships are getting warmer. Toronto and Ottawa are now looking to legalize Uber, which doesn’t really affect me in Lethbridge. I do use taxis sometimes, and I find them adequate; call 20 mins before you need to go and usually they’ll show up on time. This article is not so relevant to me at the moment, but it’s a hot issue in Toronto and Ottawa – probably. Taxi companies should continue to make it as hard as possible for these legalization process to proceed, and impede Uber with protests. Ultimately, if Uber does become legal in most cities, I can see that the end game could result in large scale mergers of independent taxi companies across the country through M&A in order to gain the economies of scale to compete with Uber. The merger will essential make a new, and very competition taxi organization capable of wiping the floor with Uber. Standardize everything, cut cost, stabilize your routes and staff, and drive Uber out of business. Sounds crazy right? I agree, my model is pretty unrealistic, but what this does suggests is that major changes are needed in order for taxis companies drive out Uber; because right now, Uber’s making all the right connections.

  15. Jackson Tiefenbach

    I have had limited experience being in cities that have uber available, though I am open to the idea of using the service if I am in a situation where it is available.

    In regards to how taxis expect to compete, this feels like a standard “competition in industry” scenario, where the onus is now on them to either offer much better service, or at a cheaper price, as that is the only way I can see them sustainably competing against this new entrant to the market. (Assuming, of course, that the safety issues and controversies that have surrounded uber don’t continue or get worse. That is a real issue that could potentially bring down the company if not dealt with.)

  16. Zhiyao Guan

    I never used Uber and I seldom take taxi since I came to Canada two years ago. However, when I was in China, I took taxi frequently because it’s not only convenient but also affordable. In my hometown, it costs only one Canadian dollar as long as the place you are heading to is within two kilometers from the place where you departure. Most importantly, it saves a lot of time for you. However, it’s more expensive to take a taxi in Canada compared with China.

    Taxi companies can compete with Uber by providing superior customer services. What’s more, taxi companies can also reform their operating system and provide timely, affordable services for consumers. Besides, both professional and moral quality of drivers should be taken into consideration while deciding the person who should be hired for the company. Although Uber is cheaper and convenient compared with taxi, the issue of safety is still a problem for them. Therefore, taxi companies can compete with Uber from this perspective. Taxi companies should try their best to provide a safe connections for the passengers. Safety is vital both for customers and taxi enterprises. No one want to take a taxi that’s unsafe. So, as long as it its safe, a growing number of consumers would choose to use taxi even though the price is slightly higher than others.

  17. Narinder

    When giving the opportunity in a city that offers Uber, I do use and would continue to use Uber. Uber is fast, reliable and convenient. The benefits of Uber far outweigh those of a taxi. Some may say it is wrong, and immoral and that by using Uber we are ruining a sector of business, but as the French say “c’est la vie.” A lot of people in first world countries have access to smart phones that have apps and it is easy to call for an Uber. If I were in another city, I wouldn’t know what a taxi company phone number would be to call for one or where the “hang out spot” is to hail a taxi. However Uber is just clicks away from getting a ride. Another great feature about Uber is that you do not have to pay or have to have cash at hand. The fact that it gets charged to your account is a great thing to have in case one spends all their money unwisely at a bar or for some reason find themselves stranded. I understand that taxi drivers and Uber drivers do have conflicts and don’t get along but I ride Uber will continue to do so for convenience factors. Uber also offers Uber Lux in which your Uber driver will come in a sports or higher end car, which is far better than a yellow car. So yes I do ride Uber and I am not ashamed to say I love it.

  18. Karla Carcamo

    I currently don’t use either since I never really have a need to use a taxi or uber. Lethbridge doesn’t have Uber right now and my get so drunk I can’t drive days are long gone. Let’s be real, I am old. But that being said, if I am in a city in the future where Uber is available or something like it and I am with a group of people, I will use Uber. I like that more cities are requiring background checks on Uber drivers. I just don’t trust it if it isn’t regulated some way. What can taxis do? Well they need to completely revamp their business model! Let’s face it, the taxi system is slowly dying out and more and more are technologically driven and free-forms of businesses taking over. Uber from what I can see is more of an efficient way of getting a ride, it’s cheaper and they’ve even added a new form of luxury that is accessible to us common folk. Taxis need to revamp and add more perks that cost the consumer less if they want to compete.

  19. Chanelle

    I have never used Uber services, but have used taxi services time to time, however this tends to be a last resort decision. Many times i have been in a taxi where the driver is completely rude, breaks many traffic laws (Like driving in the ditch to get around traffic) and overall doesn’t give off the vibe of safety. Ultimately, taxi services are extremely expensive. With my experience of taxis, i can’t help but think Uber is worst. Uber is avoiding many regulations that taxis and taxi drivers must have, which makes me think they cannot be much safer. Because the Uber driver is allowed to use their own vehicle, although it should be, there is much higher chance that their vehicle may not be up to standard. It is also much easier for a person to become an uber driver, so imagine what could happen if this fell into the hands of the wrong type of person.
    Ways in which the taxi companies may try to fight back and gain advantage on Uber is to offer discounts, especially for students. Also, the taxi companies could offer many online offers, and the ability to book a taxi online or on an app. Although my experiences with taxi companies have been negative, they may be able to express their safety above uber and use that as a marketing tactic.

  20. Kurtis Hawkins

    While in Las Vegas about 2 months ago, in need of a ride, I found myself hailing down a taxi (not an easy feat) then paying around $20.00 to $25.00 to get back to my hotel which was located off the strip. After talking to a few locals, they recommended using Lyft, and Uber rival. I hailed a taxi at the Tropicana to go to a tattoo shop off the strip costing $20.00. On the way back we used lyft to get a driver to back to the Tropicana for $11.00. I used both lyft and uber while in Vegas and had a much better experience with these ride sharing companies than i ever did with a taxi. The vehicles, and drivers were nicer and cleaner than a taxi, a ride was faster to get and paying was easier. Furthermore, when talking to the drivers about being an uber driver over a taxi driver, they all preferred being an uber driver. As soon as uber comes to Lethbridge I will never take a taxi again!

    Unfortunately, there has been little to no advancement in the taxi industry. Its no wonder why these taxi companies are protesting, if I was making a ton money off of an efficient system I would be upset too! For taxis’s to compete in this new environment they need to provide a more efficient system and a nicer experience. Uber along with AirBnB are just a few of the new peer to peer services that will appear within the next decade that will inevitably change the market place forever.

  21. Sadie R

    I never use taxi services nor would i ever use Uber if it came to my city. When i am in need of a ride i easily set on up from my family members of friends. I have a perfectly operating vehicle and don’t do much travelling so i rarely find my self in a position to need a taxi. They are pricey and not time efficient. Public transit is just as reliable, and cheaper. Uber does offer some incentive buy having cheaper rates and an easy accessible app, but unfortunately there security standards on drivers aren’t up to par in my personal opinion. The new regulations are quite appealing, if these were all approved i would potential consider using an Uber. Taxi drivers are only protesting to prevent these regulations from being passed. Protesting against background checks and suitable insurance just entails the Uber drivers have something to hid, but once this is passed Uber will be considered safer and customers will chose Uber over taxis causing a threat to all taxi services in the city. Personally, I don’t think cabs need to do much more to compete with Uber. Although now that there is new regulations coming into play Uber has a chance of becoming a threat to taxi services. A taxi companies best strategy to compete is to lower prices, all drivers know how much gas costs and the only reason Uber has flourish is because of the convince and reduce is price. The factor of safely when taking a cab is significantly accepted by most of the public, Uber is still trying to initiate that fact they are safe. Until these regulations pass, taxis can happily charge people more because by choice they are willing to pay more. Once Uber is viewed as safe and secure, the factor of connivance and efficiency with the app/cheap prices, they will most liking give cab companies a run for their money.

  22. Hunter Ascroft

    The only times I have ever required a taxi or possibly a uber would be to or from the airport when travelling. If I had to pick I would always use a taxi simply because that is what I am used to and feel comfortable using. In many cases a uber can be more convenient or affordable but for my purposes neither of those are a real issue. I have also seen too many posts on social media about strange experiences with weird uber drivers or issues such as that but to some people the adventure could be a selling point. Taxis could be considered boring in comparison to the excitement of playing uber Russian roulette.
    Taxi’s and über in my opinion almost offer two different things. Although both are simply rides from point A to B the experience is completely different. A key selling point taxi companies could try is the consistency. Its comforting to know that all taxi’s are the same car with the same safety features, they are reliable and you know you won’t end up sharing your ride with the drivers two children, grandmother, estranged aunt and labrador. Some people like that but if your traveling in a business setting a cab makes more sense. Taxi’s should try to become more upscale and target more business and upper-class then just everyday people.

  23. Evan

    let’s address the question that has failed to be asked, why people use Uber.
    The app and Uber industry is new, a new working space has been created
    out of the need or frustration from lack of taxi service & utility in 21st century. Taxis obviosly failed to deliver or change the problems that they

    In Calgary it was a city wide problem of accessing a cab even off peak hours the
    the city and taxi industry were super slow to respond to the growing demand.
    Uber comes on the scene and provides taxi service but with a modern twist, an
    app for ease and faster turn over for drivers and happier customers.

    the few times i do take a taxi it costs too much or their debit machine fails or
    takes a long time to complete electronic transfer. With Uber app i can book a ride that will show, add a tip for a driver, see if a driver is nearby and how long it will take to get a ride. These are the benefits i know of for not even using the Uber service, this beats a call a taxi company, hope they answer their phone, hope the driver shows up or can even get one.

    The blame is on the taxi industry & the cities for failing to see the demand for
    better service, hiring more drivers, lower fees and creating a app to make it
    fit in today’s world.

    **** Don’t hate Uber for being innovative and seizing the
    customers you left in the cold waiting for a ride home.

  24. Nisali

    I have used taxis in the city once or twice but haven’t ever used an Uber.
    Taxi companies can compete with uber by lowering rates and making it easier to book rides. People already tend to trust taxis more because they are regulated, and if they were to be more accessible to customers and promote their strengths (safety, ability to book). The simple fact is, that this is the first time in a very long time, the taxi industry has faced competition by something different. Even if new companies entered the market, they were all run and operated pretty much the same way so there was never competition on price point or how a ride was accessed. All markets must have true competition at some point and the differentiation that Uber has is hard to beat. Overall taxis have Uber beat just by being regulated bad it makes people trust them. if Uber ends up regulated too, taxi companies won’t have much of a chance.

  25. Yichao Jing

    Personally, I use application like Uber in my country. I think it is convenience because sometime it is a little bit difficult for me to get a taxi directly, but I can call a car in Uber in shortly and it saved my time. As we all know, using application like Uber is cheaper than call taxis directly, therefore, it can save money. However, the biggest problem is safety by using Uber, people question Uber’s drivers’ professional skills. Moreover, many people like our parents or grandparents have no idea to how to use Uber to call a taxi, so they prefer to call a taxi when they need. In my opinion, even though more and more people use application like Uber, Uber cannot replace taxi companies but it will divide market with taxi companies. Thus, taxi companies should offer a higher quality or better service to compete in a relevant market with Uber. What is more, taxi companies can offer a discount by calling a taxi. They also can offer a higher insurance to attack customers. By taking these suggestions, taxi companies can continue to compete with Uber.

  26. Lucille Black Rabbit

    I have used the taxi services which in my opinion was expensive and slow. I think I would use Uber if it was offered here in the city because it sounds like it would be a faster service and somewhat less expensive than a taxi. Through the app the Uber ride can be tracked so that you can see where exactly your ride is and approximately how long it will take for them to pick you up. A taxi service gives approximate times as to their arrival but is usually about 20 – 30 minutes slower than what they stated. If Uber was offered in the city of Lethbridge then maybe the taxi companies would lower their rates and be more efficient in their arrival times. Competition is good for the consumer since we are all always looking for the best price and better service.

  27. Amy Giesbrecht

    I used to use taxis a couple times before I had my own vehicle, only when I missed the bus or it was late and I could not catch a ride with a friend. They are unreliable as the dispatcher will tell you they will be coming in 5 minutes and they dont show up till 20-30 minutes later (I could have just walked where I needed to go). They are also relatively expensive and some drivers will take you the long way around to make extra profit which also wastes more time. Now that I have a vehicle I will not use a taxi and If I travel I will rent a vehicle.
    I have never used Uber but from what I have heard from other people, it seems to be more convenient. Instead of remembering a number or looking it up on google, you just go to the app and a driver nearby comes in a type of vehicle of your choosing. It seems more efficient and also innovative, new and exciting for this generation that spend most of their life online. However, Uber does have its security issues, as the app does not run like a company and drivers are basically contracted through the app so customers are riding at their own risk. The taxi companies screen their employees and it is their responsibility to ensure the safety of their customers so customers may still find it better to use a taxi rather than uber,

  28. Mitch

    If I am in a market that allows Uber, I choose to use the service over taxis. I found it to be a cheaper way of getting around Phoenix, AZ than using taxis and enjoyed my experience. We even made such a good relationship with one Uber driver, Manny, that he gave us his personal phone number and had us just text him when we needed a ride because he lived so close to where we were staying he agreed to stop what he was doing even if he was at home and come get us. He explained that he chooses to make himself available on the Uber app whenever he wants and usually will go drive around for hours at a time getting as many rides as possible and then return home and turn off his availability, much like a work shift. For us though, we could text him while he was at home then he would turn on his availability and he would come get us through the app. It worked out wonderfully for the both of us. I don’t see the problem with bringing in competition for taxis, as this will force them to be more competitive themselves. Taxis are lagging behind the technology Uber uses and in order to compete would have to “get with the times”. Smart phones are commonly used and having a taxi app would be beneficial to taxi companies. Having an app that lets customers know wait times, rates, predict fees for the distance people want to travel are many of the things that would put them on par with Uber.

  29. Jiani Z

    I have never used Uber before, but I have used an app that is very similar with Uber before I came to Canada; these two apps provides almost same services but the one I use is calling taxis in a cheaper way. I would like to try Uber because I am kind of interested in its services and price. For taxis, I use them unless I have no other choices or I am really in a hurry. Taxis are too expensive to afford.
    Since Uber and taxis are very similar to each other, the competition between them are really strong, so creating competitive advantage is important for their development. One thing that taxi companies can do to compete with Uber is to justice their price or provide discount. They can also develop their own membership card so customers can get discount or save points to earn something special. Another thing that taxi companies can do is ensuring the security and convenience of their services. Since Uber does not have a very strict rule of their drivers, customers may worry about the security. If taxi companies provide a safer service than Uber, people will still choose them even if they are expensive than Uber. What is more, training drivers to be polite and thoughtful to customers can also attract customers.

  30. Matthew Sentes

    I have never used a taxi and do not plan on using a taxi in the future. If I ever need a ride I will ensure that I have one by setting it up with a family member or a friend. They are too expensive for me to justify using one, and there has never been a reason for me to spend money on it.
    Taxi companies are going to have a tough time competing with Uber and similar companies. The attraction to Uber comes from fairly low prices and the ease of being able to use an app to get the ride. You do not have to remember a number to phone a Uber, instead you just go on the app, where as you need to remember a phone number to use a taxi. That makes it very easy and convenient to use these services, especially when the people using these services may be a little drunk. In order to try to compete with these sort of companies, taxi services can create an app that will allow people to order a taxi that way. However, creating and then advertising an app will be expensive, especially if they are trying to compete with a company who is known for their app. Another way that taxi services can compete is by promoting their safety. Uber`s biggest problem that they face is the lack of regulation that can lead to people who should not be driving people around to be apart of their company. Taxi service can take advantage of this in order to illustrate that the extra money that you pay for a taxi is money that you are putting into your own safety. It will be very hard for taxi`s to compete with Uber at a price point; however, there are a few ways that they can differentiate and illustrate why taxis are better than Uber.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s