Ethical Dilemma #4: Healthy Competition or Unfair Monopoly?
In 2012, Uber came to Toronto. Its' arrival was somewhat quiet, causing very little friction. However, it was only a matter of time before the residents and tourists of Toronto began to realize that Uber often added more convenience and comforts to their travels when compared with local cabs. The cars were cleaner, the driver was friendly (they are rated by the customer which then, in turn, provided them with more opportunity to be booked for trips in the future), and the wait times were often lower. Instead of having to stand outside and hail a cab at 2am after the bar or hope the cab you called to order would be on time to get you to the airport, the consumer could simply go on an app and order a ride. Not only did the customer book online, they could track the drivers' location and all payment was conducted online. Overall, it seemed to be a great option.
Now, let's look at the impact this has had on the taxi industry. According to CBC, the judge has tossed out a $1.7 billion dollar lawsuit filed by the taxi drivers in Toronto against Uber in December. They are suing Uber for loss of wages and financial impact on their business and pension. For example, taxi driver Lawrence Eisenberg owns three taxi licenses, each worth $360,000 before Uber arrived in 2012. These licenses would bring in about $4500 a month for Eisbenberg prior to Uber but now is bringing in about $200 a month. This driver explains that this was his pension and he feels, along with many other drivers, that the city has a responsibility to protect them from being under-minded by Uber and other ride-share companies. Apparently, the judge does not see it this way. Do you?
Do you think the city has a responsibility to protect the taxi drivers from Uber's monopoly?
Is this an example of healthy supply and demand or should have the city of Toronto banned Uber from coming or, at the very least, limited the amount of drivers allowed in the city limits as a way to protect their taxi drivers? Or is this an example of healthy competition?
Links to use:
Judge tosses taxi group's $1.7B suit against Toronto, in wake of Uber's rise
How Uber is ending the dirty dealings behind Toronto's cab business
I have no problem with the concept of Uber in Toronto. I think it is natural competition. Competition is a regular part of business. All businesses compete with each other, and instead of complaining and refusing to change, businesses improve their product and business model in order to be able to compete with other brands. Uber is the new brand in Toronto's ride business, and it is more successful because it has a better business model and creative idea. The taxi business is flawed, and it can either create a new system idea, or lose the competition to Uber.
ReplyDeleteThe taxi's outdated license system is very flawed. It allows a single wealthy person to purchase many taxi licenses and rent them out to drivers, even though this is illegal. Theses few people make all the profits in the taxi business, whereas the drivers lose most of their profits from paying for the license, gas, and taxi itself. Many people also prefer not to ride in taxis because they are often in disrepair, and they are harder to get conveniently at all locations.
Uber allows customers to pick a specific time and place of pickup and also their preference of different cars and driver in the area, as well as pay online. The company also has a more fair business model, with each driver undergoing a background check, and then creating an account and registering their car, with only 25-30% of profits going to the Uber company. Uber is more popular among drivers because of its fair regulations, and because of this many taxi license holders are switching to drive for Uber, and people who make money by renting out licenses are losing drivers. Uber is also more popular among consumers because of its higher quality service.
Both the City of Toronto Act and the Toronto Municipal Code say nothing against protection for taxi cab owners or license holders. Because of this, I think Uber is a fair game, and taxis businesses can either update their model or let Uber take over as the most popular ride business.
I fully agree with the point you made regarding conventional taxis outdated license system, and how the owners of these taxi services exploit their drivers and take a large portion of their earnings away.
DeleteI also agree with the outdated license system, very interesting point.
DeleteI agree, it is like a competition and part of a business.
DeleteI agree with your point about that taxi businesses should update their systems, if the taxi businesses do not change their system as soon as possible, I believe that not long the Uber will take over it completely.
DeleteWeather or not Uber is a healthy competition or an unfair monopoly to the taxi industry, Uber should not be penalized for it's creative thinking and it's business success. I strongly believe that Uber towards the taxi industry is a healthy competition. If you were an entrepreneur with an idea, are you going to stop yourself from your idea because your competition might lose business? Probably not. With the question of is Toronto responsible for protecting every taxi driver, I don't think it is or should be. What are the reasons for why it should be the responsibility of Toronto? Does anyone really want their tax dollars going to a taxi driver where their service is unreliable? Dirty and unfriendly versus Uber who adds so much more convenience. Uber not only seemed to have friendlier and significantly cleaner cars, but also had much lower wait times. Uber also makes it much more convenient with everything on a simple app with additional things such as being able to track where your driver is and how far away they are from you as well as all payments conducted online. I think this is healthy competition for all the taxi drivers and all the taxi companies who unfortunately have to purchase license to drive unlike Uber. If anything, I think something should be done to look at how license are being given out. If an Uber driver doesn't need a license, but a taxi driver does, that's where you're probably not going to compensate for their full pension, but maybe the city does need to take a look at how can we make it healthy competition and what do we need to change so that taxi drivers with licenses can improve their services to compete in a friendly and good way with Uber. I do not think that the city has a responsibility to protect taxi drivers from Uber's monopoly, but I do think that they should work with them for example if they have to pay a very high fee for their license they should work together to help them be healthy competition. Supply and demand allows the taxis that exist to improve their game so that they can still provide a good service to all the people in Toronto.
ReplyDeleteI agree with the points that you are making. Uber should not be criticized for their success. I believe that if they are bring something new to the table, that is also beneficiary for all the parties involved we should welcome the change they bring with open arms.
DeleteI like what you said about how Uber should not get penalized for making their own ideas. Uber definitely created their own ideas, taxis must have needed Toronto to file a lawsuit because they saw their business in danger.
DeleteI completely agree that there is nothing wrong with the competition Uber adds to the business. Their idea is definitely much more creative and convenient. Taxis are a type of business, and it is natural in the business world for consumers to have their choice of a better product.
DeleteI think the taxi drivers are describing a "you problem."
DeleteThe points you made are very accrete and I agree with you totally. Taxis need to work more on beating out Uber and improving their services instead of try to have Uber banned from Toronto.
Deleteposted on behalf of Zoey:
DeleteI fully agree with all the points that you have made here. It’s not fair that Uber should be penalized for there success.
Toronto is a huge city so having more than one form of business that drives people around is very smart.Ubers and taxis have the same purpose. They pick someone up and drop them off. The arrival of ubers didn't come too soon after taxis so the competition year wise is almost equal (one year apart). Most people would choose an uber rather than a taxi cab because of the popularity of them. The uber company has an app that you type in where you want to travel and request a car depending on how many people are with you. You can track the vehicle and cancel it if it’s taking too long or you don’t need it. With cabs, you call the company and wait for them to come to where you are. It could take awhile but you wouldn't be able to know because there's no app that tracks the car. Taxis and ubers are both beneficial but I don’t think that the city of Toronto has a responsibility to protect the taxi drivers from ubers. They are both a growing business and there will probably be another company for travelling in the future. Just like any other businesses there is a competition, a healthy and safe competition but the judge slapped a huge lawsuit on the uber business just because they were making more money then the taxi companies. If the cab companies want to enhance financially they should improve on the ways they do things. They both have a job to provide services to the community so they should both stay present in their work areas.
ReplyDelete-maddy
I agree with the points you brought up. If both Uber and ordinary cabs find a way to work together rather than become each other's competition, they could be more effective in what they are trying to achieve. Like you said, places like Toronto are pretty big cities so having them work together would be ideal.
DeleteI agree with you, as I also do not think it is the city of Toronto's responsibility to protect the taxi businesses from Uber. And as you said, because it is businesses at the end, there will be competition, even-though it might not be fair, considering of all the taxi licenses and regulations, but that just proofs how safe such transportation still is even without such regulations. I believe it is not the Uber's or other share-riding companies fault that cabs are dying, but instead the cabs themselves and the government's regulations that is making it arguably unfair.
DeleteI agree that Uber has a more convenient business model, hence increased popularity. It is a good point that some people still use taxis, and taxi companies should improve their systems so that both ride companies can continue to serve the community.
DeleteI agree with all the point you made both Uber and Taxis are needed and getting rid of one would be unnecessary.
DeleteGood points made, I agree.
DeleteI agree that both Uber and taxi are needed because some people may only like taxi because they think the service us faster and vice versa
DeleteI completely agree with you that this is a healthy competition and I like that you mentioned that there is most likely going to be a new travel company in the future.
DeleteUber has undoubtedly taken the entire world by storm. This rapidly growing global monopoly has had unprecedented success, and because of this, taxi drivers all over the world are completely outraged. The introduction of Uber has had a very negative impact on the taxi industry, in the years since it's release, as most people prefer it to ordinary taxi drivers. So is this thriving business really stealing from hardworking taxi drivers, or is it simply time to throw out the old ways?
ReplyDeleteUber has revealed many benefits to its service that normal cabs couldn't offer. For example their advanced rating system. Customers of Uber can rate their drivers out of 5 stars, to let the future users know what is in store for them when booking in and requesting a ride. Speaking of requesting a ride, users are also given the ability to cancel the ride at any time, before it's arrival. Uber drivers are also faster to respond to and arrive at requested locations than regular taxis. Other benefits for the riders are that normally the cars are spotless and much nicer, as getting rated 5 stars in is the drivers best interests. The labour cost is also less then what you'd pay in a regular taxi as well. All these pros really show why a company like Uber has become so much more popular than conventional taxis. For the drivers, it is also more beneficial to work for Uber. While the annual pay is indeed less, Uber drivers don't have to worry about paying for rent, as the car is the driver's personal vehicle. And yes, Uber drivers still need to pay for gas and repairs, they are spending money on their own property not someone else's.
Personally, I believe that Uber is a new competitor in the chauffeur industry, and anything they bring to the table is a fair game. I don't support the idea and don't think that major cities like Toronto should be responsible for protecting the Taxi industry as Uber offers more benefits to both the rider and driver, as well as giving the customer a lot more options. While it is very tragic that some taxi drivers are making 200 out of the potential 4500 dollars that they could be making, I believe that change is inevitable, so if Uber brings a modern and superior driving service, why should you stand against them?
I agree with your idea and points, as logically speaking it is very beneficial for modern cities such as Toronto, considering of all the benefits and reasonable points you listed about Uber compared to regular taxi services. It is quite ignorant for taxi businesses to put the blame on ride-sharing companies like Uber, instead it's the regulation such as the medallion system, and obviously, the taxi businesses themselves for not evolving and expecting that to last.
DeleteI agree that Uber is much more beneficial for customers than taxis. The company also has a more fair system for employee payments, and so many taxi drivers are switching to drive for Uber. If the taxi business rose to the competition, perhaps their business could expand and adapt to meet the competition. It is not the responsibility of Toronto that the taxi companies are not trying to improve and adapt to handle the competition.
DeleteI agree that we shouldn't stand against a better driving service.
DeleteI agree, Uber clearly spent more time on their business and because of that their company thrived.
DeleteI do agree with the point, Uber was very beneficial to Toronto released some of the pressure of trying to find a quick ride if they are in a rush.
DeleteI agree that other taxi companies can say uber is playing an unfair monopoly.
DeleteI support the idea of ridesharing companies such as Uber in this case and do not think the city of Toronto should apply any regulations regardless of this case. I believe that there should have been more businesses involved or included in such transportation industry to create a fiercer competition; therefore, there will be motivation from different companies to compete, which will significantly increase the rate of improvement and providing more excellent services towards the public in this industry, despite the unnecessary regulations from governments in terms of regulating the creation of such companies that wish to give this kind of transportation service. Even though in the past, Uber had been judged for providing misleading information, according to Uber themself, the drivers who use Uber have contributed noticeably to the United States as the net economic value-add to drivers is $5.7 billion annually.
ReplyDeleteIt is not Uber, instead of the cabs who damage themselves for not evolving, therefore dissolving, arguably where modernization or improvement has not been applied to cab services for decades as there is no competition, and regulating Uber is preventing the progress of civilization, specifically where the public says Uber is genuinely cheaper, quicker, cleaner and more convenient, meeting the standards or expectations from the audience. If the taxi industry were considered good, ridesharing businesses would not have been started in the beginning.
Furthermore, ridesharing companies like Uber could also be taken over by other companies such as Robo-taxi in the future decade, which provides driverless or self-driving taxi services, considering where such labor work would be replaced by artificial intelligence.
I do not favor any specific companies such as Uber. However, I support the general idea of such an invention. The cabs could only adapt or die since it is business, after all.
I agree that it is the taxi companies' fault if they refuse to change in order to keep up with the competition. It is a very interesting idea that if other rideshare businesses provided more intense competition from the beginning of their introduction then taxis would have been more motivated to improve their business. I wonder if cabs would be in a different situation if it had played out like that.
DeleteI view this situation as a case of healthy competition. I don't see any reason why there cannot be two of the same sort of business in the same city, these businesses are both helping people. I understand why taxis felt the need to get Toronto to file a lawsuit on Uber, for the reason of their business being in danger, but then again competition is part of business. Maybe Uber and Taxi can parter to make one big successful business, this could work well since no one would feel betrayed or copied. And all the money that went towards Ubers and Taxis separately would all go to the same place. I totally understand why taxis may not want this since they obviously don't view the Uber industry as partners right now. In conclusion I think that this situation here is healthy competition that applies to most to all businesses.
ReplyDeleteI agree that there can be more than one type of business that help people. Both of the businesses should stick around because the two of them are beneficial for the city of Toronto.
DeleteI agree that Uber is just healthy companion and maybe Uber and Taxi can come together. I do think taxi could be a better competition by improving their services.
DeleteI agree with your point that Uber is simply another competitor and a healthy rival to ordinary taxi businesses. I also agree with your point that there shouldn't be any problem with two similar businesses working simultaneously.
DeleteI agree with this post, Ubers v Taxis is a healthy competition. the better business is obviously going to get better work rate, thats just how society works. For example, say an icecream shop is more updated and there are more of those shops around the city, that shop is going to be more well known and available. And therefore get better business.
DeleteI find your idea about the two companies merging very interesting and I wonder if it would every work out or if the two companies would butt heads.
DeleteI do like your thought about how Uber is a healthy rival, but I do disagree with your statement about the two companies merging together. If Taxi and Uber are already disagreeing with each other I do not feel that they would work well together.
DeleteI agree that other taxi companies can say uber is playing an unfair monopoly.
DeleteI like the points that you mentioned and I understand what you mean when you say that Uber and the taxi industry could team up to make a stronger and better business, even if that won't happen in the near future.
DeleteI don't think the city of Toronto is responsible for charging Uber and protecting Taxis. This is a healthy competition and that's how a society should be. I also don't think that Toronto should put a limit on the number of Uber drivers as its more convenient way of income without having to have a taxi license. It brings overall joy to the people of Toronto when they ride Ubers because they are cleaner, usually a better model car than Taxis, friendly drivers, easier to get... I don't see why this should be an issue other than the downfall it brings to the Taxi industry. However, this is nothing more than one product being better than the other, therefore people choose the better product.
ReplyDeleteAnother reason why they don't need to put a limitation on uber drivers is because they are constantly quitting. The society today is full of extremely sensitive people and abuse the rating system if the driver does something slightly objectionable to these sensitive people. Such as playing their own music, talking too much or not talking(too friendly or not friendly)... Many uber drivers without a good review can't pick up customers and as a result have no income and have to quit.
A full time uber driver earns about 37000, a full time taxi driver earns 27000, a new guy can earn up to 22000, and majority of uber drivers have uber as their side job. Let's assume the uber drivers only work 2/3 of the year so that's 24000 a year. That's more than a new taxi drivers yearly income. I think it is illustrated something here if someone's side job can earn as much or even more than another person's full time job even if they are doing the same thing.
Should taxi drivers have the right to sue uber because they went through registrations to become a taxi driver and uber drivers did not but they bring more joy to the society while at the same time harming incomes of taxi drivers? My answer is that they don't have the right to sue a better competition.
I agree, The city should not have to deal with this. It is no different than having to different bus companies. Transport in Toronto is big and having more than one business for that is better.
DeleteI agree with your point about it's a healthy competition, Uber becomes a kind of evolution of taxis, also maybe Uber is a chance of the taxi drivers can transform to a part-time Uber driver, and have more time to do some meaningful things.
DeleteI agree that Toronto should not put a limit on the amount of Uber's because the more there are the more people will probably use them and the easier they will be to find.
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Deleteposted on behalf of zoey:
DeleteAll Uber is, is healthy competition and doing no harm to anyone. I agree with the points that you have made here and you did your research well.
I agree with all of your points here, consumers have the right to choose the superior product/service. That is a good point you made about the salary of taxi and Uber drivers, it's a very thorough comparison, and eye-opening that Uber drivers make such a significant amount more than taxis.
DeleteUber is a new service it came around in 2012 while local cabs have been around for over 60 years. So, although cabs have been around for a long time Uber is now taking over. Cab drivers want uber to be banned but I think it's unreasonable. Cabs are found on the street and to pick it up is easy. While you may have to wait for an uber you can know when you will be picked up. Cab drives do get to drive around and wait but they have to rent their cab and pay for the license. Uber can offer jobs to people that want some extra cash. You do have to have a background check but so do cab drivers. If cabs went out of business this would affect the economy. Most cab companies are run by the municipal government while Uber is a more of a business. Cabs have a bigger impact on the economy but I feel uber can be more practically. If you need a solo ride at the moment a cab can be faster and cheaper but when with larger groups you can find an uber so you can take 1 car while you would have had to take multiple cabs. Both Cabs and Uber are used in Toronto and to remove Uber would make cab more practically but I feel that shouldn’t happen and Uber is just healthy competition.
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ReplyDeleteTaxi Services have been around for a very long time, dating back to 1964. For a very long time taxis were the only form of private transportation and were very convenient for people that needed to get around the city. When Uber drivers were created, it was the first time the taxi business felt targeted and placed under pressure to compete against this new form of public transportation.
ReplyDeletePersonally, I have no problem at all with the concept of Uber services. If you are running any business you have to expect that sooner or later another company is going to want to compete with you. With Taxi’s not showing particularly huge changes or improvements in the past couple of years, the company that runs Uber thought it was their perfect time to emerge.
Outdated taxi licences, purchasing multiple taxi licenses with the intention to resell and taxi fraud have all placed regular taxi services under a negative light among the public. Taxi drivers have also been losing a lot of money. Much of their profit goes towards purchasing their taxi licence, gas, car maintenance and multiple vehicle ownership. This results in inflated taxi rates for customers. Uber services cost less.
Recently Uber has also revealed many great benefits to its service. For example their advanced rating system. Customers that use the Uber service can rate their drivers out of 5 stars, to let the future users know what is in store for them when booking in and requesting a ride. The higher the rating, the better the service. Uber drivers are also 10 times faster to respond to your request for a ride and arrive at requested locations, which not all taxis can do. For the drivers, it is also more beneficial to work for Uber and costs less than a regular taxi driver. Uber drivers are not required to pay for a taxi license. While the annual pay is indeed less, Uber drivers don't have to worry about paying for rent, as the car is the driver's personal vehicle. Uber drivers do still need to pay for gas and repairs but, they are spending money on their own property not someone else's.
Both the City of Toronto Act and the Toronto Municipal Code say nothing against protection for taxi cab owners or license holders. Because of this, I think Uber is a fair game, and taxis businesses can either update their model or let Uber take over as the most popular ride business.
I agree with the points you made about how Taxi has not taken the step to improve their service, and with the arrival of Uber Taxi is slowly falling behind unless they start to improve.
DeleteI agree that Uber has introduced many technological advances in the ride-sharing business.
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ReplyDeleteTaxi started all the way back in the 1960s and it was the only transportation for people to get from places to places. It plays an important role as a transportation alternative in all parts of the world. Although sometimes defined as a semi-public transport mode, the taxi service is the first public transport in small towns when the distances between common origins and destinations become too large to be traveled by non-motorized modes. In developed countries, taxis tend to be used as a substitute for private vehicles by passengers who use the service for convenience reasons or because they do not want to own a car, even though they can afford it. The transportation convenience business was all good until 2009, when Uber was founded. It became a heavy competition between the locals and the ride sharing company. Travis Kalanick and Garrett Camp, after selling his first startup to eBay, Camp decided to create a new startup to address San Francisco's serious taxi problem. It was only a start-up at that time, and the company came to Toronto in 2012. To answer the questions, I personally think that they city doesn't really need to protect the taxis. Uber is more expensive in general, and as a kid, who doesn't have a job yet, I would still prefer the taxis. The fact that Uber is convenient and cashless, so instead of chasing down a taxi on a street or calling and waiting half an hour for a car service, e-hail app users are able to hail a car from any location and have it arrive within minutes. But usually in fancy restaurants or in big hotels, there are usually taxis lining up and waiting for costumers, so you don't even need to use the app. However, it depends on the country, Toronto is a big and busy city and Canada is mostly land, riding from city into another city might take times, so costumer probably like to prefer better services. On the other hand, where I am in Taipei, Taiwan. Taxis still have more businesses here than Uber. The fact that this country is small, we don't really need to pay more for a 10 minutes ride. Taxis are cheaper too. Teens in my age don't even have enough money for the taxis, how are we going to pay for Uber? But that's because we have Metro here in Taiwan, it has air conditioning and it's faster and way cheaper. So I really think it depends on where you are at. I don't know about Canadians taxis, but some Taiwanese drivers have smelly Taxi, they also try talking to you about his experience with your country, listening to old Chinese music, trying to run down pedestrians in crosswalks, making hand signals to other drivers, this is where Uber could grow business. You can't blame it all on others, make your own service better and therefore, that's where you get more costumers and money.
ReplyDeleteI Agree with this post completely. When i think "taxi", I (personally) imagine a messy, torn up car. I think we have all experienced at least one bad taxi but i bet that not many of us have experienced that in an Uber. Ubers are safer and more updated for this generation. Why shouldnt they deserve better business?
DeleteI think Uber's operating model is a normal natural competition phenomenon. Uber has undoubtedly affacted the taxi industry by offering lower prices, faster and more quality service, and the Revenue is about 14.15 billion USD in 2019. In the other hand, Uber’s operating model maybe is a great system that every business should learn, which is “freelancer” which means although this group of freelancers is laborers, they can still decide when to work, similar to the concept of odd jobs, except that they are their own bosses. Existing laws are indeed insufficient to regulate such newly emerging work patterns. They do not seem to be temporary workers because temporary workers still have to sign a contract. Employers hire labor to do the things specified in the contract, but only have a deadline and a task limit. Here we can clearly see that it’s much easier and convent than the taxi driver, also I think that maybe Uber can provide some transform services for taxi drivers to change to Uber drivers.
ReplyDeleteI agree with your point that the ways Ubers operating model is very common is business. You also have some really interesting facts, the facts that there revenue is 14.5 billion is interesting.
DeleteI don't think that the cities should do anything about Ubers Monopoly to help taxis. I think if taxis are so upset that they should try and make a name for themselves like Uber has and maybe clean their cars and create an app like Uber to track them. This may help with them getting more business. I say that it is a good supply and demand and that the city should not ban Uber or control how many Uber drivers they have going. That would be unfair to Uber because they have built the name for themselves. They have gotten people to like them better than taxis so if taxis are upset than they should try harder at doing some of the stuff that Uber does to try and make them better. I think it depends on who you ask if it is a healthy competition or if it is not a healthy competition. What I would personally say is that they're both needed because Toronto is a big city and they should not limit the amount of Uber's because I think it is a healthy competition between Taxi and Uber.
ReplyDeleteYour points on how Taxi should try and make a name for themselves are absolutely true instead of sitting around waiting Taxi should try and make something happen for their business.
DeleteI like what you said about Taxis, to clean their cars and provide an app that customers can use. Maybe the thing Taxi needs is to be more like Uber to get more business.
DeleteThe point that it is a big city and there is room for both Uber and taxi is fascinating. Your other point that it is a healthy competition I agree with.
DeleteI agree with your point about that taxi company should change themselves, not just say that Uber take their job to make them lost lots of costumers. I think that they should find a way to cooperate, both to success.
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ReplyDeleteI think there is nothing wrong with Uber in Toronto. Uber has adapted to a new generation which has caused people to lean more towards Uber more than Taxi. Taxi and Uber are just regular competition. What is the difference between any other two businesses in the same line of work? Take for example Burger King and McDonald’s, both are in the fast-food industry and one of them came before the other. Another example is BMW and Mercedes, both are rival companies in the car industry. My point is businesses battling is a regular thing and I think that Taxi should not have sued but adapt too. Uber has become a big and very reliable business "the company operates in over 60 countries and counting.” States Much Needed, Uber is also providing jobs all across the world according to Business of Apps there are a total of 3.9 million drivers worldwide. I believe the reasoning behind Uber’s quick success is the fact that Uber is using the younger generations love of technology to their advantage, by having an app where you can request a driver with one button, know the estimated time the driver will get to you and pay has really boosted Uber up in the rankings of the transportation industry. Taxi has been around for a long time and is a well-known way of transportation but unlike Uber Taxi has not changed a lot with the times and I think that is what is making Taxi fall behind a bit. All in all, I think Taxi should try and adjust with the times instead of trying to halt Uber.
I agree with this post because of the point you made near the beginning, uber has adapted to the new generation, it is more updated and available to the public.
DeleteI agree that competition between businesses is natural. I really like your perspective about how Uber is appealing to the modern age of consumers. Competition is what keeps businesses improving their design, and because taxis haven't had any competition, their business model is more old-fashioned and they will become obsolete unless they change with the times.
DeleteI agree with what you said about Taxi having to adapt. They cannot just go sue Uber for creating healthy competition which is a large part of business.
ReplyDeleteThere are many business that have gotten outdated and new ones have been built off of it. It is a way of business. Taxis have been around for many many years. The first taxi started to opperate in in 1897. In the few years before Uber was around taxis weren't very luxurious. People were starting to notice and complain. I think that Uber saw a opportunity to offer a better service. This is simple business. Toronto is a big city that is always changing and evolving, in a changing and evolving world. If you were a taxi driver you could become a Uber driver and still make about the same amount of money. Taxi drivers should be embracing Uber and the better things that it has to offer and not going after them about trying to changing something. Taxi drivers should be embracing change and not going after the change.
ReplyDeleteI thoroughly understood and appreciated your point about how change is necessary for the improvement of our world. I agree that taxi drivers need to accept the change that Uber is bringing because it could effect our world in a positive way.
DeleteI believe that Ubers are more beneficial to the general public than taxi cars. the competition is reasonable because Uber is just more updated and available. It makes sense to me that when a busines is more productive, updated, and available than another, it gets better work rate. In my opinion, Taxis need to adapt to the competition and update their performance.
ReplyDeleteI liked your point about how taxis should update their performance. If they want to be supported they need to support the changing needs of the world we live in now.
DeleteI agree with you that Ubers are more beneficial because they are more updated and available.
DeleteTaxis were a huge breakthrough in the world of transportation when they first came to be. People were provided with jobs, and others no longer had to buy their own motorized vehicle to obtain transportation from place to place. It was convenient, and it was a positive system. However, as people’s needs of security and promptness changed, so did their perspective on the effectiveness of the taxi. People were in need of a better system, and Uber provided them with that. Although in a big city, taxis can be more advantageous and cheaper in some places, an Uber is mostly cheaper than a taxi, you can save your payment options when using it, and it takes a wide variety of payment methods. Uber also has assistive technology, a feature that allows people to share their location with others, and WAV models(https://www.finder.com/uber-vs-taxi). The biggest selling point for me is the safety of Uber compared to taxis. “Our data shows they (women) still consider Uber… the safest form of transportation compared to taxis, professional car services, and public transportation. More than 75 percent said they (women) haven’t used Uber any less due to safety”(https://www.alarms.org/uber-lyft-womens-safety-report/). Considering all the advantages of Uber, I believe that the city should support Uber’s integration. In my opinion, if taxis want more support from the city, they should work towards being as safe and accessible as Uber. The competition appears to be mostly positive.
ReplyDeleteI liked your perspective on Uber in the way of creative thinking and innovation. I agree that creativity is important for our economy.
ReplyDeleteWhen a new company enters an industry, it is a sign of competition, which usually is beneficial to the customer. However, the competition must be fair. It is not fair that Uber drivers don’t have to go through the same background checks as the taxi drivers, and that Uber as a company is not regulated the same way as the taxi service. “There is unfair competition, with taxi drivers having more stringent regulations and costs, whereas Uber's own regulations aren't even followed (one example was a taxi driver saying he drives for Uber; he made up his information and was accepted).” (insauga).
ReplyDeleteI think that if both companies were operating under the same regulations, this would be an example of healthy supply and demand, but unless they have the same regulations, Uber has an unfair advantage over the taxi service.
I feel that the city has a responsibility to protect the taxi drivers from unfair competition. Eliminating the competition is not the solution because the consumer does not benefit from the lack of competition. Regulating the industry for all companies and applying the same rules would level the playing field.
I do not believe that the city of Toronto should ban Uber or limit the number of their drivers allowed in the city as there are many positives to the Uber business model. Uber’s business model introduced new things to the taxi industry, such as booking a cab through an app, cashless pay, rating the quality of service, quick service, or lower rates. However, there are also negative sides to Uber, such as price surge, not paying taxes, treating their drivers not like their employees, meaning, their drivers don’t have the same protection as the taxi drivers, not thorough background checks.
In my opinion, there are lots of pros to having Uber provide taxi service, but the company must follow the same rules and it must be regulated, in order to make it fair game. On the other side, the taxi service in Toronto must adapt to the new times we live in and improve the way they operate, in order to get back their customers.
I love how you thought of why Uber can succeed and maybe if the taxi services start to think like that, they will be able to become more successful again.
ReplyDeleteUber has always been a very strong competition for Taxis. Uber is more efficient because you only have an app on your phone, and no matter where you are, you can order one at any time and they charge it to your credit card, you can even use it when you are traveling. Although there are people who prefer Taxis than Ubers.
ReplyDeleteToronto is a very big city with many people, therefore, people have different preferences, like using Taxi or Uber.
This is also why Uber is better than taxi's because you can use it in a different country and not have to worry about translations and communication.
DeletePosted on behalf of Zoey:
ReplyDeleteI don’t mind the idea of an Uber. I think that it’s great business and a better way for people to earn money. An Uber is such an easy way to get around and is more popular for younger adults or kids who want an ride somewhere. I think the taxi businesses are threatened by the Uber because it is beginning to become very popular. The Uber is healthy competition just like any business out there. I don’t believe that the Uber business should be shut down because a business is threatened By the Company, If Toronto really wants to do something about it I think that they should cut down the number of Uber drivers per day. I still believe though that the Uber company is healthy business and something that should not be shut down. As Long as the Uber company hasn’t done any harm there’s no reason for it.
I have no problem with the concept of Uber in Toronto. I think it’s a fair competition. Every business should rapidly improve its service and goods, not just complaining. Most people would choose an uber rather than a taxi cab because of the popularity of them. The uber company has an app that you type in where you want to travel and request a car depending on how many people are with you. It’s something that taxi companies are lack of. Taxis and ubers are both beneficial but I don’t think that the city of Toronto has a responsibility to protect the taxi drivers from ubers. They are both a growing business and there will probably be another company for travelling in the future. But it’s like the law of the jungle in today’s society business competition, it’s very fierce. Old or unsuitable thing must be replaced by a brand new creative one. Because the taxi companies are not willing to change their ways of service, more and more consumers are willing to call cab on uber.
ReplyDeleteI agree with this statement especially the part that states "old or unsuitable thing must be replaced by a brand new creative one." I agree with this statement because it is so hard to think of brand new ideas in the world today however it is much easier to improve ideas that are already made so if there is something that is behind the technology faze it will most likely be improved.
DeleteI think that it is completely fair for Uber to take the market because clearly Uber has better services and this happens all the time in other businesses. I think that it's not fair for the government to get in the way. I think this because in cayman (where I live) the government got in the way and now nobody uses taxis because the only people who are allowed to drive taxis don't get paid enough so they will try and charge you 75$ for a ride that is suppose to cost 50$
ReplyDeleteI agree that Uber has better services.
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