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by jnardiello 4310 days ago
Genuine question: Is Uber really cheaper than taxi? Honestly: in Italy it's not. It's hell expensive, probably a bit more expensive than usual cabs - which are incredibly expensive by definition. So yeah, this "We are a startup", "Silicon Valley" thing is just a horrible excuse to avoid complying with regulations.

If regulations in Silicon Valley (or wherever else) allow Uber business model to be sustainable, good for them. This isn't something obvious when you go international and it is part of the challenge. Simply not giving a fuck is just mediocre and you deserve to cease operations. Period.

8 comments

In Zürich/Switzerland, the cost is about the same and so is the convenience of ordering a car as all the Taxi companies serving Zürich have their own app that works like the Uber app does.

Me personally, I think I would rather prefer purchasing a regular Taxi ride by an official Taxi company. Even if it did cost more (which, again, it doesn't really), for that money I pay extra, I get some of the additional guarantees like maintained cars, garanteed-insured drivers and quicker travel (official taxis are allowed to use special lanes reserved for buses and taxis, something Uber would never get away with).

In a country that's not as price-sensitive and where regulations already provide some clear additional benefits for official Taxis, I think there's potential for both Uber (fewer guarantees, no permission to use special lanes, but cheaper) and official Taxis.

According to press reports, Uber is currently subsidizing every ride with a $20 incentive to the driver (which seems a pretty clear cut instance of predatory pricing to me, but Swiss anti-trust enforcement is fairly lax). Once that subsidy goes away, either Uber pricing or driver income will take a turn for the worse.
Not complying with regulations is pretty popular here in Italy, too! Indeed, there are so many regulations, that being able to get away with not complying with them is a distinct competitive advantage, and the market has, in many places, selected for companies and individuals whose skills mostly lie in that direction, rather than actually creating value.
See: Berlusconi
In Berlin it's very close to the cost of a taxi anyway (you can check it on the Uber app, it's pretty funny).

I really don't see what the fuss is about, in this context. If it were actually much cheaper then yeah sure, but as it stands they're not really much competition for cabs. Especially considering their attempts to circumvent safety regulations.

In Manchester, UK they absolutely are. Especially at night: what would be a £20 ride in a hackney and a £15 fare for a pre-booked company is about £10 with Uber. That's for 5 miles in 20 minutes.

Add onto that the ease-of-use and some level of assurance that if your cabbie takes you round the houses you can get a refund and it's a no brainer round here.

Wow, that's a lot. In Bristol UK I can get a taxi from a taxi rank to home, which is just over 5 miles and takes about 20 mins, at 4am, for £10 max. Not tried Uber
While the plural of anecdote is not data, I've seen pretty much these exact same figures. The Uber's here look identical to our normal private hire taxi's though, so I'm assuming their drivers are in fact legally compliant?

For the record, all the drivers I've spoken to have worked for a local company beforehand and, while earning about the same amount, are far happier now.

In London, UK... it depends.

Late at night when the roads are relatively empty, the black cab is still damn efficient at moving you from A-B cheaply. The key is to be moving fast and not get stuck in traffic.

When there is traffic, then the minicab that doesn't meter the fare depending on time... solely distance... proves to be the cheapest. These are nearly all small, local firms, so your mileage on price may vary.

Uber do work out cheaper for the non-perfect conditions that tend to exist most of the time... some traffic, some speed.

What would be good is an app that polls Hailo, Uber, Lyft and some local firms and gives you the cheaper of all options.

But then, you know this is a race to the bottom, and service will eventually suffer if people buy purely because of price.

London has the well known taxi test you have to take. Can Uber drivers manage this? Can you navigate London by car successfully via GPS?
Uber is competing with the minicabs in London. The black cabs are in a different, heavily regulated market; more knowledge (roads and traffic patterns), reserved lanes, and availability catered to central London.

I've spoken with Uber drivers that used to be minicab drivers. They used to pay weekly rent on the GPS/meter/radio they are required to use. 200£/week + petrol + insurance + maintenance really adds up.

Black cab drivers come from the pool of minicab (and now Uber) drivers. To become a black cab driver requires passing the knowledge and to learn it you need a lot of practice. Only practical as a minicab or hired driver.

Only black cab drivers take The Knowledge. Minicab (pre-booked private hire) drivers in London mostly use GPS.
The GPSs work OK in London. The black cabbies are probably a bit better at knowing which routes will be quickest but there's not much in it. Black cabs have an advantage in that they can use taxi only lanes / roads such as Oxford Street while Uber can't.
In Berlin, the last time I've been there (beginning of this year), Uber was priced just slightly below the normal taxi. There was no UberX, so you did get the extra quality.
> Genuine question: Is Uber really cheaper than taxi? Honestly: in Italy it's not. It's hell expensive, probably a bit more expensive than usual cabs

There are different Uber products that come with varying prices. In Sydney, I can make a trip with UberX (regular ride sharing) that's $10, or with UberBlack (licensed hire car operators) which would be $30 to $40.

UberX is definitely about 20% cheaper than taxis here in Sydney.

Depends a bit if you are talking Uber (the luxury service) or UberX (the cheap one). In London I'd say UberX is about 30% less than black cabs. Uber proper is more expensive.