Uber Rejected by London Cabbies

Discussion in 'General Trading Discussion' started by gracer, Feb 10, 2016.

  1. gracer

    gracer Senior Investor

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    Uber has offered London cab drivers a whole year of free usage of the taxi-hailing app but was straightforwardly rejected by the latter. It has been known that there has been some friction between Uber and some cabbies because of what they call an "unfair competition" that the company has been causing. An association of cab drivers in London stated that they are confident no one would take the offer.

    Most of the black cabs in London, which have been known to be an iconic part of the city's structure use a ride-hailing app called Hailo and they have quiet a nice relationship with each other so Uber might have a hard time penetrating London's famous cabbies.

    Here's more on the story:

    http://www.bbc.com/news/business-35533210
     
  2. Corzhens

    Corzhens Senior Investor

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    That opposition to Uber is already expected of the existing drivers of public utility vehicles. Even here in the Philippines, taxicab drivers and operators are trying their best to find fault in that Uber scheme. There were issues like the Uber driver was impolite or rude and there was even a case, though unproven, that the Uber driver had divested the passenger of money and belongings - thievery. Fortunately, nothing was proven and Uber is in progress in Metro Manila roads.
     
  3. crimsonghost747

    crimsonghost747 Senior Investor

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    Well of course all the taxi drivers hate Uber. They are doing the same thing for half the price and taking all the customers. What is needed is not for Uber to be stopped but rather than to change the laws of the countries into such that the official taxi drivers don't need to charge an arm and a leg to make profit.

    Over here it's 8 euros for just stepping into the cab during the night. 8 euros. And still the taxi drivers are far from being rich because all the money goes into stupid stuff like not being allowed to use the car for their own personal business, so you are forced to have two cars etc.
     
  4. Rainman

    Rainman Senior Investor

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    Uber has been rejected in a few other places for other reasons too. People do hate competition but I think no one should be forced to use a cab when there could be cheaper options. Thing though is ride-sharing isn't going anywhere. It doesn't matter what anyone wants or doesn't want. Reject Uber, there'll be another service . . . and another.
     
  5. Alex

    Alex Senior Investor

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    London cabbies are an important part of city life and yes Uber can help out, as there are many private firms that offer car services like Addison Lee which many companies use. These people need to make a living, need reliability and Uber does under cut them.

    People will use them for journeys to the airport and such because those jobs most cabbies don't like as they lose fares on the way back, plus they all pay huge fees in licenses and tax,
     
  6. pwarbi

    pwarbi Senior Investor

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    Usually I'd agree that Uber should be allowed to operate in a town or city, no matter what opposition they face, but in regards to London I'm not too sure.

    The London black cabs, are an important part of the culture of London, and unless you live there, or have visited and used a black cab you won't realise what sort of service they offer.

    While I agree with a competitive market, I'm happy enough that Uber aren't going to force the black cabs out of business, as London needs them.
     
  7. gracer

    gracer Senior Investor

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    I also understand the sentiments of the London cabbies and other areas of the world where Uber has been operating and trying to penetrate. They have been in service for a long period of time then comes Uber which suddenly gives them quiet a competition but as others have said, maybe cabbies and Uber could roam the streets together without any competition as long as their services don't overlap each other.
     
  8. anders

    anders Well-Known Member

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    I'd probably trust a black cab driver in London more than I would a Uber one, but then again I'd probably trust a Uber driver more than I would a "mini-cab" driver in another city outside London. I suspect Uber won't be able to break the hold of London's black cabbies for that reason, but I do think they'll be successful elsewhere. It's a horses for courses thing.....
     
    Last edited: Feb 10, 2016
  9. crimsonghost747

    crimsonghost747 Senior Investor

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    And that is how it should be. It's called free market. If you feel like paying more for additional/better service (assuming the cabs can provide that) then that's ok but you shouldn't be forced to use the expensive service because the government banned the cheaper one for being cheap.
     
  10. Alex

    Alex Senior Investor

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    It can take two years before a black cab driver can get their license (the knowledge test) and that is reflected in the price that a cab driver will know London and not get lost or have to look up how to get somewhere.

    By poaching cabbies Uber is luring them, but it's whether it's worth it for them. Most won't because they make more from being hailed and at certain times cabs are so in demand (train stations) they don't need an app for business.
     
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