INDUSTRY IN REVIEW By Don McCurdy That about sums it up. Recent articles out of Ottawa recognize the battle between good and evil, or Uber and the taxicab industry in this case, with the teller of the tale deciding which is which. One of the articles quoted a “professor of strategic management” who indicated that wherever Uber had disrupted the industry “there’s something wrong with the current system.” Reports out of the Taxicab, Limousine and Paratransit Association are that the main topic of discussion at their recent event in San Antonio was Uber. How do you deal with Uber entering your market? How do you defend your turf? Well, as the professor stated, there is something wrong with the current system. Now, if you’re a company it’s pretty easy to wonder what they mean by that. I get that. Since you’ve had it your way for a few decades it seems like it should always be that way. Well the worm is turning and real competition is at the bulwarks. This isn’t the driver co-op or the “professional driver’s association,” this is competition for the cream, not the crumbs. These boys got some cash, enough to buy some friends. Like you’ve been doing throughout your history, they want to alter the regulatory market to suit their needs. Therein lies the problem and, in my mind, the solution. Uber can only win if the rules are changed to support their objectives. They’ve proven they have the financial resources to persuade regulators in numerous jurisdictions that the regulators don’t need the kind of regulations taxicabs need. How did that happen? Well, you did it. You needed to create some separation between the “independent contractor” driver and the company to reduce the company’s tax burden and potential liability in traffic encounters. Separation was also created between the driver’s income and the company’s income. More cabs meant more income for the company, but not the driver. The taxicab industry taught me a lot of wonderful lessons about life, business and service. Unfortunately, most of them were lessons learned while driving, not managing. How to treat people, how to satisfy a customer, how to deal with problems, how to prioritize. As near as I see it, if taxicab companies are to survive they will have to police their product, something many services have simply been unwilling to do. The good old days of any warm body in the front seat paying any part of any lease is better than the cab sitting on the lot are coming to an end. All I can say to that is it’s about time. As usual, I agree wholeheartedly.
Posted on: Sat, 24 Jan 2015 11:58:59 +0000
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