The Worst Threat for Taxi Drivers Has Not Arrived Yet
While the union, association, authorities and users discuss about Easy Taxi, they are ignoring other applications as Uber, which will menace all positions in the area
In January, the application Easy Taxi arrived to Uruguay, becoming popular among users and taxi drivers by word of mouth. In May, both the trade union and association warned that the Brazilian app would threaten the job of operators. This scandal made Easy Taxi even more popular and there were measures and pressures for authorities to stop this and other similar programs.
But Easy Taxi does not represent the biggest problem for taxi drivers. In fact, they are taking part in demonstrations all over the world against applications.
Uber and Lyft are the main examples. Both are similar to Easy Taxi: users request a vehicle and, the nearest available driver will pick them up. The difference of Uber is that users may request taxis or cars with professional drivers, and Lyft matches the user with drivers from his/her community to travel together.
These apps offer huge advantages for users. To begin with, they introduce a larger number of transport vehicles, which are actually scarce in certain dates, times of the day and climatic situations. To reduce the dangers of getting on a car with a stranger, users can see the name and picture of the driver, the car model and plate number, as well as the rate given by other passengers on how they drive and the condition of the car, for example. The user then is also able to decide whether he/she wants to go with somebody who drives very fast or has no safety belts in the back seats.
Moreover, Uber users can choose the car, which determines the fare of the trip. It also offers the possibility of sharing the trip and paying through the smartphone with credit card or PayPal.
Uber has been operating for four years in San Francisco and they state that it is cheaper to move around by using the app than having a car of your own. It also has a cheaper service, UberX, where you pay 30% less than a taxi.
Millionaire and fast
Uber is expanding fast in presence and in capital. The company, which is available for free in 41 countries and 141 cities, was appraised at USD17,000, becoming the most valuable tech start up in the world.
The good news for taxi associations in Uruguay is that Uber is not available in Uruguay yet.
The bad news is that their expansion method is relentless. Their strategy is similar to that of Amazon and Groupon: grow fast, associated with a similar new business and block competence with very low prices that even generate loss to the company. When authorities and taxi drivers tried to react by regulating or banning it, the application was so popular that it was too late.
In Uruguay they can see it coming and try to stop this foreign app before they are beaten by its success. Although it may also happen as it happened with Groupon and its local version Woow, a local company that adopted the business model, nullifying all grounds to ban a Uruguayan tool that generates job positions and offers a useful service. So, their only way out it what should have been their first measure: join technological innovation.
Lea la versión en español aquí.
