The Secrets of the Taxi Wars: Tonight
For years black taxis and mini cab firms have only ever competed with each other but there is a new kid on the block – a Californian tech giant – that’s trying to take over the streets and its name is Uber.
The ride hailing app gives users the opportunity to book an Uber taxi at the touch of button. The user can follow the taxi’s journey via a GPS generated image and it allows the passenger to pay online so no physical cash needs to change hands.
A global giant – Uber is valued at £33bn and with investors that include Google, this firm is serious about taking over the taxi world. But worldwide Uber has seen its fair share of opposition, and as its consumer popularity grows in the UK so does the number of its adversaries.
With a prosecution against Uber for allowing a cab to drive without insurance, further claims that the company accepts fake insurance documents, and issues surrounding low pay and congesting London’s streets, there’s been a lot of controversy surrounding the company. But is any of this justified?
The Secrets of the Taxi Wars - explores the debate surrounding the business. We hear from those who use Uber, those who oppose it, those who have been affected by it, as well as hearing from Uber directly.
With the UK taxi market worth £5bn, it’s no wonder the established taxi trade is worried. Steve McNamara from the London Taxi Drivers Association has held a black cab license for 30 years and knows first hand that cabbies have been hit hard.
He claims that incomes are down 25% during the night and 10% during the day – meaning a significant drop in earnings for his members. In the past he has spoken out quite publicly against Uber and still questions their tactics.
It’s not just taxi protests that have grabbed front-page headlines. Transport for London is currently holding a consultation for the future of the private hire vehicle trade in London and there has been many well reported bust-ups in the London Assembly chamber.
Lib Dem Leader in the London Assembly and Mayoral Candidate Caroline Pidgeon is a big voice in the debate and is concerned about passenger safety with Uber cabs.
We spoke to Jo Bertram, General manager of Uber, when asked if it was a lottery as to whether their Uber partner-drivers have got valid insurance. Uber responded -
They also explained that the forged insurance case was an “isolated incident”.
Uber is still however attracting a large number of drivers wanting to become one of its driver-partners. With offers of flexible working hours, the ability to earn up to £900 a week in fares and cash incentives to recruit other drivers, tens of thousands of drivers have so far been hired.
James Farrar, a GMB union representative for Uber drivers, has disputed Uber’s claims that drivers can earn those amounts per week. He says its drivers are walking away with below the minimum wage after costs. James claims, “top drivers earn £5.68 an hour, that’s the top driver.”
Despite strong opposition from established cabbies, Uber is thriving, with UK profits last year of nearly £900,000 and global revenues of over a billion.
Uber claims to be up to 40% cheaper than a black taxi journey and its popularity is clearly evident. In the last three years millions of people have downloaded the App, and it’s seen as a welcome addition to the marketplace.
However the company has been criticised for its surge pricing – where the price of an Uber ride can increase depending on the availability of driver-partners. This is something Tonight put to the test when we sent two couples on the same journey – one in a black cab and one in an Uber cab – and compared timings and price. The results can be seen on the show here.
One of the frontlines in the taxi war has been social media and as well as the constant posting of photos and videos of so-called Uber drivers getting it wrong on London’s roads, Jo Bertram has been personally targeted. Tweets have referred to her as an “Uber bitch” – and others have compared her to Joseph Goebbels and Jimmy Saville.
Uber is certainly having an impact on the industry and for the black cab and mini cab industry their futures look uncertain.
Watch Taxi Wars on the ITV Hub by clicking here.