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Uber

Funds do not always go between the driver and the passenger. Cash transaction yes but credit card or debit is not a direct transaction between the driver and the passenger. My company also has an app that allows payment through the app just like Uber so no difference.
 
There are no restrictions on the number of drivers a city will license. There are restrictions on the number of taxis licensed though and for good reason. If a city had demand for around 200 taxis but were to put 400 taxis on the street availablity would outweigh demand. End result drivers could not make a living. You can't have a Tim Hortons on every corner just to make it convenient for the customer. They could not survive. Taxis are no different. People call for a taxi and expect in at their door immediately. Some times during the day you do get one quickly but 2am on a Saturday night when demand is highest it may take longer. The solution is not more cars on the road as during the rest of the week when demand is not that high the driver/car owner has to be able to support the vehicle. Sunday to Thursday I can go to most restaurants and get a table right away but that same restaurant on a Friday and Saturday night I may have to wait for a table for some time. Does the restaurant owner need to put an addition on to the restaurant and make more tables just to accommodate 2 nights out of the week where demand is highest but to go out of business because he can't fill those extra tables the other 80% of the week?

If you were to replace all taxis and substitute them all with Uber at some point the number of Uber drivers will be saturated as to the demand. You will still end up with the same scenario at peak times there will be no Uber drivers available because they are all busy and you will then have to wait. Adding more drivers will not work as they will all make so little money competing with each other that they will stop doing it. Right now the Uber seems so great because you can get one quickly because they are not the largest provider. If they were to kill the taxi industry they will end up no different as supply and demand will not change and the market can only support so many.

Another thing to ponder is cities require taxis to operate 24/7/365 not UBER so lose the taxis and there is no guarantee that there will always be enough Uber drivers working any particular time or hour as they choose to work when they want. See how many Uber cars are available on Christmas day!

The industry is far more complicated than the average person thinks. Most people only consider how fast did that car get to me. There is a lot going on in the background. Then we are asked why are taxis so expensive? You figure it out, the cost of fuel, vehicle, maintenance on that vehicle, overhead (dispatch), and insurance ($8,000 to $12,000 per year per car!).

The new Uber driver never considers the amount of wear and tear they put on their car, how much that newish car they have will cost them when the transmission goes (Uber won't cover that) it all looks good on paper until they start factoring in the hidden costs to the Uber driver and eventually they realize they are not making a whole lot of money in the long run. Wait and see what happens when an Uber driver get into a serious accident and the passenger is seriously hurt or worse killed. Then that Uber driver finds out his insurance company will not cover him because he is driving his personal car under a person insurance policy that restricts him from operating that car for hire. Let the lawsuits begin and Uber driver is now bankrupt. And Uber does not allow tips to the drivers. Tips are what allow taxi drivers to exist as the portion of the fare left over at the end of the day usually is less than minimum wage!

SweetOnion said:
Would the fact that there are no funds exchanged between the passenger and the driver have any effect on the situation? I mean obviously there are tons of parallels to be drawn between this and a real taxi service.. I am only interested in it as I find the whole relationship between a city, a person that wants to drive, and the lack of available taxi cab licenses to be quite an interesting topic.. definitely on your side for the big picture, but still interested in doing it myself. :D
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taximan62 said:
There are no restrictions on the number of drivers a city will license. There are restrictions on the number of taxis licensed though and for good reason. If a city had demand for around 200 taxis but were to put 400 taxis on the street availablity would outweigh demand. End result drivers could not make a living. You can't have a Tim Hortons on every corner just to make it convenient for the customer. They could not survive. Taxis are no different. People call for a taxi and expect in at their door immediately. Some times during the day you do get one quickly but 2am on a Saturday night when demand is highest it may take longer. The solution is not more cars on the road as during the rest of the week when demand is not that high the driver/car owner has to be able to support the vehicle. Sunday to Thursday I can go to most restaurants and get a table right away but that same restaurant on a Friday and Saturday night I may have to wait for a table for some time. Does the restaurant owner need to put an addition on to the restaurant and make more tables just to accommodate 2 nights out of the week where demand is highest but to go out of business because he can't fill those extra tables the other 80% of the week?
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See uber fixes that by making the number of cars very flexible. Supply and demand at it's finest. How would it be if pizza delivery drivers would be limited by the city to make sure the orders get spread out?

As for uber getting too big and increasing their price? As soon as that happens more companies will come and start a similar service at better rates.
 
And at that point the quality and safety of the passengers will get worse as it will come down to who does it for the least amount of $ and since there are no regulations the whole industry will become a $h_t show.
daught said:
See uber fixes that by making the number of cars very flexible. Supply and demand at it's finest. How would it be if pizza delivery drivers would be limited by the city to make sure the orders get spread out?

As for uber getting too big and increasing their price? As soon as that happens more companies will come and start a similar service at better rates.
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Someone with a taximan62 handle defending the taxi monopoly? Whoda thunk it.
 
Oh yes as it stands now most taxi drivers are foreign doctors that do it for the prestige.
 
taximan62 said:
Wait and see what happens when an Uber driver get into a serious accident and the passenger is seriously hurt or worse killed.
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It's cheaper to kill a passenger in your car then it is to cripple them.
 
How is it a Monopoly last time I looked Toronto has multiple companies, far from a monopoly!?
daught said:
Oh yes as it stands now most taxi drivers are foreign doctors that do it for the prestige.
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daught said:
Oh yes as it stands now most taxi drivers are foreign doctors that do it for the prestige.
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:lmao: :lmao: :lmao: :lmao: :lmao: :lmao: :lmao: :lmao: :lmao:

I was going to say quality and safe? Have you ever ridden in a cab in Toronto? Yikes
 
taximan62 said:
How is it a Monopoly last time I looked Toronto has multiple companies, far from a monopoly!?
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Mighty convenient of you to omit that a handful of people own all those taxi licenses, and they're always given preferred treatment when new licenses become available for "bid".......kinda like a monopoly.
 
Roomie said:
:lmao: :lmao: :lmao: :lmao: :lmao: :lmao: :lmao: :lmao: :lmao:

I was going to say quality and safe? Have you ever ridden in a cab in Toronto? Yikes
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Yea. Disgusting. Safe? Please the smell of of some TO cabs can kill. Never mind the whole suspension clunking.

I took uber once, in Denver. Great experience. Dude was a ski guy doing it for side money. Shared some great touring spots.
 
daught said:
Oh yes as it stands now most taxi drivers are foreign doctors that do it for the prestige.
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Haha, that old cliché cracks me up. Doctors who have no regard for the life of others on the road, contradictory at best.
 
Considering the last 2 cab rides I took home with Blue (or White) taxi from Mississauga....I'd take my chances with an UBER driver anytime over it...cab driver stank like ***, ran through 3 stop signs, and then also ran a red light. Not to mention the fact he looked like he was barely holding his head up. I called and complained and not much happened from that except 'thanks, we will investigate'....

As for insurance. Just wait until 1 or 2 of the UBER drivers have serious accidents and their insurance doesn't cover them because they were driving a client. Then you'll see a quick shake up as a lawsuit will surely be filed. I believe there was recently a blitz (can't remember where) that the cops called UBER drivers, took a few rides, and then charged them with improper insurance.

EDIT: Any UBER drivers among the members here? I'd like to hear from them to counter any points from a taxi driver.
 
im not an uber, but i did private driving for a while. mostly insurance (accident injuries) cases where taking a cab isn't ideal (physical, cognitive, psych issues). Insurance was a chunk more expensive, and largely dependant on declared distances driven. the (tiny) company i worked for paid for most of it. it didnt make me much money, but kept me entertained. i don't see uber drivers making money unless they arent properly maintaining/insuring their vehicles, especially not in canada
 
If Uber stays successful as an ap there's nothing to stop another individual from creating a clone so less of a monopoly issue than our current cab system.

The insurance coverage has to be addressed. It's one thing to collect a few dollars here or there by driving your car on company business or accepting gas money from a friend and wholesale whoring out of your car. It won't take an insurance investigator long to find if you are a Uber cabbie. When the passenger needs major medical treatments does the driver pay or does Uber? If Uber demands that drivers have proper insurance they will be acting in a greater capacity then just a social connector.

I so rarely take cabs that I don't know what has happened to the ambassador cab system that was to enhance the TO cabbie image.

The Toronto cab system is as flawed as our government. The passengers don't get what they pay for and the drivers don't get paid for what they do. The money ends up in the middle. Maybe in the long run Uber will do some good by forcing change.
 
Move over TTC?

http://www.wimp.com/wifi-bus/

What if Uber instead of cutting rates charged more but offered premium services. Your tastes would be encoded into your account so the driver would be chatty or silent, your music rock or classic, quiet or loud (Beiber wouldn't have to punch the driver), bring a coffee
 
Oligopoly is the proper term. It's a legalized monopoly =)

A great example would be our wireless market...the 4 of them control 95% of the market share, so all they need to do is sit down and say "lets jack up the prices together and we all get rich".

.............and they've done it many many times. I didn't know taxi companies were similar.
 
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Actually the city sets the rates. The rate the taxi charges is set down by the city.
油井緋色;2289305 said:
Oligopoly is the proper term. It's a legalized monopoly =)

A great example would be our wireless market...the 4 of them control 95% of the market share, so all they need to do is sit down and say "lets jack up the prices together and we all get rich".

.............and they've done it many many times. I didn't know taxi companies were similar.
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