27/11/2014
San Francisco-based Uber, which serves more than 200 cities worldwide, rolled into town about a year ago, and seemed innocuous at first, recruiting taxi drivers to pick up passengers using its app. Users can see where the nearest taxis are located, hail them and pay, all through their smartphones.
However, Uber’s newer service, Uber X, which began earlier this month, is the real threat to the industry. While Uber uses already-licensed cabbies, Uber X is staffed with non-professional drivers using their own personal cars, charging customers an average 30 per cent discount on traditional cab fares.
Uber claims to be safer for riders because the company checks all its drivers’ criminal records and driving records (something the province will only start to do on Dec. 1), and it can track its customers’ movements by GPS. Any complaints or problems can be registered with the company instantly through the app.
Taxi drivers are crying foul, saying Uber X drivers aren’t regulated, its cars aren’t inspected and drivers don’t have to take any courses or pay for an expensive licence (which can cost upward of $200,000).
“It’s a lot of people who are retired or do it part time, and they don’t care if they just make $50 in a day, but it takes away money from us,” said Farid Bellil, 56, who has be driving cabs in Montreal for nearly 30 years.
“The threat posed by Uber could also affect the lucrative reselling market for taxi driver’s licences. Because there is a limited number available, many purchase the licences and either rent them out as a source of income, or hold on to them as an investment, because their prices have been steadily rising. Now valued at around $200,000, Bellil fears the licences will plummet if Uber X takes hold, because driving a cab will be a less lucrative job than it currently is. Roy said, however no matter how much his industry changes, Uber X still has a huge cost advantage because it doesn’t use licensed drivers.
“I don’t have a problem with Uber,” Roy said. “But we’d like the company to follow the rules so we can compete on a level playing field.”
Jason Magder, Montreal Gazette
More from Jason Magder, Montreal Gazette
Published on: November 24, 2014 |