Uber, the ride-sharing mobile app service, isn’t only creating a better car service in cities all over the world, the company is also making taxi companies become more competitive, or at least trying to be. It’s great how competition can benefit the consumer.
Beck Taxi, a Toronto taxi firm, established an online petition urging the city to decrease its meter rates in order to compete with Uber. The petition is also asking the city to reduce its initial meter rate. Moreover, it wants the city to consider dropping its license fees.
Beck hasn’t suggested what the rates should be. But the rates should be able to cover the $316 for a taxi license, $303 renewal fee and the costs of a police background check.
It’s now up to city hall if consumers will receive cheaper fares.
Right now, Toronto passengers pay $4.25 ($USD3.22) as soon as they enter the car. They then pay 0.25 cents for every 0.143 km as well as another 25 cents for 29 seconds of standing while engaged.
Beck isn’t the only taxi service to call upon city hall to drop its fares.
Earlier this summer, Co-op Cabs also encouraged city hall to decrease fares by 20 percent. However, according to Alex Pierson, spokesperson for Co-op Cabs, the company wants the city to ensure all drivers have commercial insurance and have regular car inspections.
“Anything less than a level playing field will be considered unacceptable as our drivers simply can no longer compete,” Pierson said in a statement.
Will this then finally prompt Uber users or consumers to take a cab in Toronto? If this comment from a CBC reader has any bearing at all then perhaps not.
“I’ll get in a Beck taxi once they actually take the time to clean them, so they don’t smell worse than a dumpster on a hot summer day. I’ll get in a Beck taxi once the license that they post in the cab actually belongs to the driver (not their friend, their step brother, their son, etc). I’ll get in a Beck taxi once they stop illegally talking on the phone during cab rides and engaging in distracted driving (checking their computers for their next fare). I’ll get in a Beck taxi once they actually start taking credit/debit cards as their supposed to. I’ll get in a Beck taxi cab once I’m treated like a normal customer with respect. It’s not all about what people pay, it’s about service. Beck and other Toronto taxis had a monopoly and held the people of Toronto for hostage too long. Shape up your service and maybe just maybe they can salvage some customers back.”
This was the solution all along for taxi companies. Protest the government and not your competitor. It’s the government creating all of the prices, rules and regulations. At the same time, though, taxi companies enjoy the protections of governments to keep potential rivals and newcomers out of the industry.
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