The advantage of Uber has nothing to do with price and everything to do with grotesque incompetence on the part of the taxi operators.
Five-six years ago, when I asked for a receipt for an expense report, I got a hand-scribbled note. Running credit cards often required hand-based crank mechanisms. Autoplaying TV on the back of a seat that was billed unless you explicitly opted out. It was, in short, a scammy operation designed to squeeze you in all the impolite ways, and there was nothing you could do about it. When Uber/Lyft came on the scene, it took the scam out of the taxi industry and transformed the situation into one where you had a clear understanding of the price, where you could get a clear and reasonable receipt (emailed, even!), where you could pay with a card. You get a clear idea of how long the operator will take to arrive.
I had to use a taxi in St Louis, MO last summer. In order to do this I had to call the taxi company. No app, no website, nothing. It took 45 minutes to show up, period. The driver couldn't find me when he got near. I am very glad I did not miss my flight. It reminded me again of how deeply I support the "ride-sharing" services.
I consider the taxicab operations to be corrupt and effectively incompetent, frequently propped up by asinine medallion systems and graft at the city level. Therefore, I refuse to use taxis if Lyft or Uber are available. I will NOT intentionally contribute one red cent to these jokers.
Now, all of what the author said about Uber's flouting of the law is true. And that's not something I'm terribly happy about. But I think there's a certain value in simply ignoring bad law and fixing it on the fly. Might be the American in me, but so it goes.
In any case: if the taxi industry in Japan is honest, competent and well executed, Uber/Lyft will not have the profound advantage it has over the taxi industry in the US.
I feel your pain. That's what taxi service has been like for me in SF and LA. Also it was effectively non-existent except for calling to be taken to the airport because there were so few.
Japan, or at least the populated parts generally have tons of taxis so they are easy to find. They are polite and very clean, one thing western cabs are not. If they do something wrong (go the wrong way, end up taking the wrong road) more often than not they'll refund a portion of the fare without asking. I've had this happen a few times a year over the last 20 years.
Singapore is similar. Tons of cabs. In fact in Singapore you could book cabs in an app / online since like 2009. You get told the number of your cab so when lots of cabs are driving up you know yours is #27B-6. I had similarly nice experiences. I tried to tip a driver $3 for a $7 fare just so I could give him a $10 and he was like "too much lah!" and gave me $2 back.
I don't know how Uber is doing in Singapore but my understanding is not well. It's higher priced than local cabs for one.
My point being I agree with you. It's totally the taxis fault for providing sub-par service. In places where that's not the case Uber is having difficulty.
I suppose there's also the issue of car ownership though. For Uber to work you need people who own cars and are willing to drive them. Places like Tokyo and Singapore where most people don't own cars would probably make it harder to find drivers. I guess NYC has people from outside to drive in?
>Singapore is similar. Tons of cabs. In fact in Singapore you could book cabs in an app / online since like 2009. You get told the number of your cab so when lots of cabs are driving up you know yours is #27B-6. I had similarly nice experiences. I tried to tip a driver $3 for a $7 fare just so I could give him a $10 and he was like "too much lah!" and gave me $2 back.
Singapore's cheapness is due to its extreme levels of labor suppression. A couple of years ago they imprisoned bus drivers striking over unfair pay (they essentially had explicitly racist pay scales * ). They've deported and imprisoned other union activists. In the 80s the prime minister stepped in to break a strike in Singapore Airlines staff promising "I will, by every means at my disposal, teach you a lesson you won’t forget. And I’m prepared to start all over again. Or stop it!" and subsequently threw the strikers in prison.
The practical upshot if this is that they have huge income and wealth inequality compared to other countries less brutal to labor movements and the workplace cultures are usually "keep your head down and don't EVER criticize the boss" (small wonder very little decent software is created there).
Food and taxis and other similar services are embarrassingly cheap. If you're relatively wealthy and gaping inequality doesn't bother you, it's pretty awesome. It scores really high on those "economic freedom" measures because of this.
This is also partly why Uber - whose USP involves is capitalizing on other countries trending towards low wage commoditization by accelerating that process, isn't doing especially well there compared to incumbents.
In Singapore the 'racial' hierarchy is: Chinese Singaporean -> White -> Malay Singaporean -> Indian Singaporean -> Malaysian -> PRC Chinese -> Bangladeshi
The bus driver salary hierarchy was : Singaporean -> Malaysian -> PRC Chinese
PRCs are regularly denigrated with terms like "foreign trash" and "PRC scum" - they get the epithets much worse than most other immigrants - with the exception of Bangladeshis. I don't know why they look down on them with disdain given their shared ancestry but they do. If you want to see this racism for yourself, look at the comments of a website called 'stomp'.
In any case, the salaries accurately reflected the default prejudices of the society. It would be like if American bus drivers paid whites more than latinos who in turn got more than blacks.
They went on strike because of this and got beaten up and thrown in prison before being deported.
The salaries also reflect the negotiating power of people from somewhat poorer and much poorer countries. If they decided to lower Malaysian and Singaporean bus drivers to the same level as PRC, there wouldn't be any Malaysian or Singaporean bus drivers. The pricing of labor is exactly what you'd expect from economic and political incentives: don't lay off native labor, source foreign labor from multiple countries so they can't form a powerful union bloc, pay as little as possible.
Right. And the 0 compensation of slaves before emancipation in the United States reflected their relative negotiating power.
>The pricing of labor is exactly what you'd expect from economic and political incentives
Right. If you get the police to beat up union organizers and throw them in prison it does tend to exert downward pressure on wages - which was exactly my point.
That's partly why it's the "2nd best country" to do business according to CATO: docile, servile labor.
Note that the only disagreement I have here (that I felt like articulating) is that the pay scales are "racist." Though I do want to point out that prohibiting unions from forming based on racial or country-of-origin lines is obviously a very reasonable thing for a country like Singapore to do. And so is prohibiting strikes without notice, or strikes, period, in essential sectors -- if you don't like it, go work in a non-essential sector.
Don't know about Singapore, but they do it the same way as taxis the world over - they either find some place that's out of the way of traffic, like a side street or driveway (especially if the stop will take a while)... or they just sit there disrupting traffic and make people deal with it. Usually it's either a multi-lane road, or a smaller low-speed road where traffic can slow down a little and squeeze by. Not strictly ideal, but people cope.
The taxi stops are there simply for the convenience of drivers and people looking for taxis. Taxis can still stop and pick up passengers anywhere cars are allowed to stop (double yellow line).
What's the lah mean exactly? Heard it a lot in Kuala Lumpur but did not check then. Can sort of guess, but good to hear from someone who knows. Enjoyed being there.
>if the taxi industry in Japan is honest, competent and well executed
I've used Taxis in Japan across the country for 20+ years, can attest to its quality, reliability, and professionalism. It's on the expensive side, with rides usually starting at 700 yen (roughly 7USD) [1], but the drivers are courteous professionals who drive smoothly and know their cities and routes cold (if they don't, they'll apologize for not knowing and ask you for directions).
The only downside is that sometimes the drivers are cigarette smokers. While they won't smoke inside the car, the odor can be very noticeable.
[1] I believe this will be reduced to 500 yen soon.
One of my best friends is from a country without tipping. He's well-traveled and has something like 20+ stamps in his passport. He says he loves tipping. I was a little curious so I asked him why, he said in countries without tipping, service is shit. Moreover, the demeanor of everyone involved is shit. He said "you Americans don't know how good you have it". I guess even someone fake being nice to you in expectation of a tip is better than being treated like dirt because you disrupted someone's cigarette break in Paris.
He said the only exception to this is Japan. He says they have, hands down, the best service in the world. Whether you're in a family owned shop out in a rural area or some upscale joint in Roppongi, the people there actually care if you've enjoyed your food (and will nearly be offended if you try and tip them).
Thought his opinion was a bit odd, but I think it might be valid considering his experience and the fact that he's not a naive, anti-establishment 20-something. He's fairly pragmatic and a realist.
Nonsense. In my experience (granted not 20 countries but more than a dozen) the service is at least as variable and often worse in countries where tipping is common. Also, it encourages behaviour that exists only to extract a larger tip.
Just price the goods correctly so that I know when I start the transaction what I am going to pay, then I'm more likely to return to your establishment to enjoy the food and service.
That has also been my observation. However, where the US stands out alone for me in the developed world, is that tipping hasn't just become common in a few isolated situations - like getting something served at the table or getting ones' room cleaned. I can somewhat understand those because you as a customer can judge best how labour intensive / stressful your particular case has been for a low paid worker. But in the US it's everywhere. Why the hell do I have to tip a hairdresser? A taxi driver? A gas station serviceman? They have prices based on workload and materials anyway, so please, why do I have to figure out your correct salary for this interaction based on some arcane percentage system myself? This, at the end, is just what I call unprofessional. If you want to see how professional the service industry can get - as others have pointed out - just visit Japan.
Hmm, from my years in New Zealand, I can't say service was any less good than it is in the U.S.. There were more "pay at the counter and take a number to your table" establishments, but usually that was for classes of restaurant where that model totally made sense (e.g. pubs).
I'm told that Switzerland is a no-tip country, but the service there was excellent the two times I visited Zurich. I left tips anyway, because I didn't think the staff having to put up with my atrocious attempt at speaking German was part of their normal job description.
Why countries besides the US and Japan is he talking about? I live in the US and have received great service everywhere I've gone, including no-tipping countries like China, France, the UK, Spain, Italy, and Greece, so this doesn't fit my observations at all.
In Russia, such kind of services started way before Uber just as the next step in the evolution of taxi companies, benefitting from the same things as Uber did: no regulations, no taxes etc. The first apps were targeting JavaMe phones! So, from the Russian perspective, Uber is just another competitor in the flooded market. We were actually surprised that Uber is treated as an innovative startup in the USA.
A few years ago I was living in Boston across the harbor. The only way to get there is via subway (which closes at midnight) or via car through an underground/underwater tunnel.
If I hailed a cab and make the mistake of disclosing my destination before getting in the car, they'd usually just drive off without saying anything. If I got in the car before telling them where I was going, they'd often start making a fuss and listing off excuses as to why they couldn't go there, and I'd basically have to "force" them to drive.
Totally agreed. I am on a business deal that brought me to the country of Qatar. Many of the yellow cabs here (blue over here) refused to turn on their meters instead trying to negotiate a fare with you -- often starting at 2x or 3x the actual fare and trying to see how much upside they could keep. They would be nice initially and then try to arm-twist you at the end of the ride. Uber arrived and caught on like wildfire. You didn't need to negotiate, they didn't need to pretend not to have change, etc. The no-nonsense system is what makes Uber so remarkable.
I mean it really depends... like in Morocco this never happens, unless you look foreign. All taxis have a number on the top of the car, so you can just easily report it. And the penalties for drivers are actually quite harsh, even just referring to 'I know the taxi number' means he's shutting up, turning on the meter and getting you to where you need.
You can still have a shitty experience, but for locals it's mostly fine. I doubt Uber will take off there in any big way. I'm wondering if that's the same way for Qatari locals, or if there was another reason for Uber to catch on.
In many countries Uber is just another taxi brand, one that's licensed by the local authorities. The only thing it has going for it is the app, but all their competitors have apps too. Plus, I've never had to use an app - I just call an automated number, press one digit and a taxi arrives at my door within a few minutes. If I'm using a mobile phone then the operator answers.
Maybe - but in many countries it isn't. In my European country, calling a cab means always talking to the operator (often after 2m ringing) and then waiting 10-30m. Around 10% of the time it never comes, so you'll have to call again. When it finally does, your reward is paying an extra fee for having called.
Then there are the zones; your home is a bit outside the city? The meter will be running - at an increased rate! - before the car even arrives.
Never had that problem here in Edinburgh - been using the same cab company for years (both personal and business). They have an app or an IVR system or an operator.
Never had a missed cab, cars are always very clean and drivers good. I honestly can't think of a single problem I've had with them in what must be 15+ years of regular use.
Absolutely the same case in India and then some more.
I would argue that Uber (and Ola) have raised my standard of living as far as transport is concerned. I've stayed in Bangalore & Chennai and have travelled in a few more cities.
All problems that you mention ring true here plus an additional things - most taxis & autorickshaws don't even run on the meter. Every ride involves a ritual of haggling the price. If you're new to a city, it is certain that you would be fleeced. Then, many would deny the ride to a destination if it is not a hotspot. On few days I've take the local transport, I get dropped off a kilometre away from my home and have to walk the rest.
I would never take a local taxi or an autorickshaw if there is an Uber/Ola available.
> Now, all of what the author said about Uber's flouting of the law is true. And that's not something I'm terribly happy about. But I think there's a certain value in simply ignoring bad law and fixing it on the fly.
And this is the problem. Uber is providing superior service for less cost. Clearly the city, which enacts laws on my and other tax payers behalf, isn't actually acting in my favor when it goes after uber and lyft.
If we manifestly don't need the laws protecting the taxi racket then let's do away with the regulation -- not pile more on.
Trying, plus $5, will get you a Starbucks latte. Results are what count. I couldn't care less about the motivation behind regulations, just the outcomes. The outcomes in many places are that taxis are inferior in every way.
> The advantage of Uber has nothing to do with price and everything to do with grotesque incompetence on the part of the taxi operators.
Which is why in Europe things like Hailonand MyTaxi are taking off. They put a level of indirection between you and the driver by handling the payment and receipt. They are great as a result. The rest of the uber experience I care a surprising little amount about.
"I had to use a taxi in St Louis, MO last summer. In order to do this I had to call the taxi company. No app, no website, nothing. It took 45 minutes to show up, period. The driver couldn't find me when he got near."
This is almost all true and ride-sharing has totally changed the game in St. Louis. One nitpick: the area's biggest cab company has had an app for a few years [0]. It's not a perfect app, but I used it a lot before Uber started operating.
Yes. You need to figure out your address or cross streets instead of having your phone give your position with three meters of accuracy, you have to wait if the operator is busy with something else, you have no record of your request if they forget about you, the ETAs are often completely made up, you have no way to track your car and know when it's about to arrive, and get no identifying information about the car or driver that's picking you up.
Posibly the taxi companies need to invest in some basic sms/gps tech.
How it works for me is:
ring ring "hi can I have a cab to location I am at location y"
Dispatcher asks my name and "says that will be 10 min" I get an sms when the cab has been dispatched and another when it arives that says ita a silver priaus licene plate no xxxxx.
Yes, taxi companies could definitely improve. Many American taxi companies have become completely complacent about any new technology. In DC, they're still struggling to implement credit card payments!
While I don't know about this particular app, some taxi apps track the unit by GPS and show you where it's currently located, which lets you know wether the wait was warranted or not.
Five-six years ago, when I asked for a receipt for an expense report, I got a hand-scribbled note. Running credit cards often required hand-based crank mechanisms. Autoplaying TV on the back of a seat that was billed unless you explicitly opted out. It was, in short, a scammy operation designed to squeeze you in all the impolite ways, and there was nothing you could do about it. When Uber/Lyft came on the scene, it took the scam out of the taxi industry and transformed the situation into one where you had a clear understanding of the price, where you could get a clear and reasonable receipt (emailed, even!), where you could pay with a card. You get a clear idea of how long the operator will take to arrive.
I had to use a taxi in St Louis, MO last summer. In order to do this I had to call the taxi company. No app, no website, nothing. It took 45 minutes to show up, period. The driver couldn't find me when he got near. I am very glad I did not miss my flight. It reminded me again of how deeply I support the "ride-sharing" services.
I consider the taxicab operations to be corrupt and effectively incompetent, frequently propped up by asinine medallion systems and graft at the city level. Therefore, I refuse to use taxis if Lyft or Uber are available. I will NOT intentionally contribute one red cent to these jokers.
Now, all of what the author said about Uber's flouting of the law is true. And that's not something I'm terribly happy about. But I think there's a certain value in simply ignoring bad law and fixing it on the fly. Might be the American in me, but so it goes.
In any case: if the taxi industry in Japan is honest, competent and well executed, Uber/Lyft will not have the profound advantage it has over the taxi industry in the US.