Taxis in Sydney and across New South Wales in Australia are experimenting with new regulations to help the industry compete with Uber. New measures include customers hailing a cab now being able to ask for an estimate before getting in and if this figure is accepted, there is no need for a meter to be used. Customers will also have the freedom to shop online for fixed fares. The key question is whether the experiment in Australia offers a blueprint for the UK.
The new approach from Down Under may help to point the way ahead for a better competitive environment in the UK.
Loyalty Discounts For Customers
Taxi booking companies like Cabcharge could also offer loyalty discounts for frequent passengers. This will help to match the prices offered by Uber and minimise effect of the forthcoming arrival of Taxify. The arrival of Uber in Sydney had a major impact on taxi operators as the app was offering 20% cheaper fares. Cab drivers will have tolls waived if they are driving over the Sydney Harbour Bridge or using the tunnel.
Changing The Competitive Environment
Uber was recently banned in London although this is likely to be overturned. Many UK cab drivers have complained about some of the competitive practices of Uber across other UK cities. Although the UK couldn’t be any further away from Australia geographically, we must remember that Uber has had a disruptive effect on the taxi industry worldwide. With this in mind, it’s important that the taxi trade looks to differentiate itself based on service quality, convenience and price. The new approach from Down Under may help to point the way ahead for a better competitive environment in the UK.