How Uber Has Left Traditional Taxis Behind

In nearly every city and town in the U.S., taxis are a common sight. These taxis have been helping commuters for decades to reach their destination. However, the world of ride hailing has undergone a drastic evolution ever since Uber, the ride-hailing app, started its operations in 2011.

Uber is not just customer-friendly, but also driver-friendly. While most passengers view the Uber app clone as being synonymous for Uber app, Uber taxi driver feel that it is designed to be a cab app for drivers. So it is a win-win situation for all stakeholders - Uber, commuters, and Uber cab drivers. Here are some ways in which Uber has left behind taxis:

• Convenience

If you want to hail a taxi, it means standing on the sidewalk waiting for one to arrive, and when you see it, you flag it down. This uncertainty may be the reason why Uber has become a roaring success.

Customers who use Uber app don’t have to stand at the side of the road to catch a ride. Instead, these customers summon a cab using their smartphone and when the cab arrives at their doorsteps, they receive an alert on the mobile devices.

• Prior knowledge

Also, when you get into a taxi, you need to tell the driver where you want to go and if the driver is unfamiliar with the location, you have to spend precious time giving directions.

As a technologically advanced cab driver app, Uber inputs the customer’s destination into the cab drivers navigation software so that the driver takes the best and quickest possible route to the destination.

• Payment options

Traditional taxis offered limited payment options to passenger. You need to have change or contend with a credit card machine.

With Uber the case is different. On reaching the destination, there is no rummaging for change, thanks to the prepaid payment model of the app. The passenger alights and walks away without a second glance while the Uber cab drivers go on to pick up their next customer, knowing they will be paid for dropping the passenger.

Decline of the Traditional Taxi Industry

Some experts claim that the introduction of Uber cab app for drivers has been responsible for the decline of the traditional cabs in many cities and town across the United States. While it is true that in some cities, like New York, there are fewer drivers are opting to get licenses to drive registered taxis and this has affected the revenues that cities and towns generate from issuing these licenses, the same cannot be said for every city and town. Also, there is no conclusive evidence to show that Uber has singlehandedly affected the traditional taxi industry.

It is easy to blame Uber for the fall of the taxi industry. However, this is not totally true as Uber has its own set of competitors and customer preferences to contend with. There are other taxi companies that want to emulate Uber’s success.

Uber’s Winning Points

1. Natural growth factor - Many city officials in the U.S. have been threatening to impose a limit on for-hire cab services like Uber. The reasons for this are simple. With a decline in ridership, taxis are often stuck without passengers and the drivers and owners still have to foot the bill for fuel, maintenance, and auto loans. With the comfort, ease and promptness that ride hailers can book Uber taxis, the market share of this company is bound to grow.

1. Filling up demand gaps - The taxi industry is an under-served market, according to Uber. And, the company opines that it is filling the gap that currently exists in the market by providing commuters what they need. Data reveals that the success that Uber has achieved has not been at the expense of traditional taxis. Also, this cab app for driver has benefitted both the Uber driver and customer without taking away from the taxi industry.

1. Well positioned to meet niche demand - Uber has been responsible for a drop in commuters hailing rides late in the night. This is because many customers prefer the convenience and comfort offered by Uber taxis over traditional cabs. It offers late night ride hailers a sense of security knowing that if they want to reach their destination, they don’t have to stand at the side of the road waiting for a taxi to turn up. This has helped Uber tremendously to capture this late night market.

The Bottom Line

Thanks to Uber’s cab driver app, the taxi industry is ripe for new as well as existing players who want to enjoy the same degree of success. They can achieve this by creating a unique cab app for drivers. Mobisoft Infotech offers effective app development services to help existing taxi companies and start-ups with their own cab driver app that can help them leave behind their competition.