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A consumer’s right to choose: Uber versus taxis
By Hayley Chazan
Click on the tags to find out more about how Uber works.
If you’ve ever been stuck waiting for a cab, you know just how frustrating the taxi system can be.
The problem is often worse on weekends and holidays. On New Year’s Eve, it is nearly impossible to hail down a cab, let alone reach the taxi company by phone.
Blueline Taxi, Ottawa’s leading cab company, accounts for 80% of the taxi market in the city, meaning limited competition and few choices for consumers.
On Oct.1, all of this changed with the appearance in Ottawa of the controversial, and quite possibly illegal, ridesharing service Uber, which has spread rapidly through the United States and Europe as well as Canada.
Uber brands itself as a technological company with its business model relying on smartphone apps. It presents consumers with an alternative to taxis and operates as a low-cost ridesharing service.
Its low cost is its most attractive feature, according to Ottawa resident Delaney Hoeppner. “Taking a taxi from my apartment downtown to the airport normally costs close to $50. With Uber, depending on the traffic, the fare can often be as low as $30,” she said.
Uber has gained a large following on Twitter, with many users actively supporting the ridesharing service. John Baird, the Minister of Foreign Affairs, tweeted about Uber, expressing his frustration about an old-fashioned cab that never arrived. He said there is a need for greater competition in the industry.
But Uber attracts criticism, even hostility, everywhere it goes. One concern is that Uber drivers are not licensed. Anyone can sign up to work for Uber if they have a car that is less than 10 years old and can pass a criminal record check.
The licensing issue has created problems for city officials. They say the company is violating taxi regulations by operating without a broker’s license and by failing to hire accredited drivers.
The city has already started fining drivers up to $850 if they cannot show proof of a taxi licence.
This dispute is not unique to Ottawa. According to the Toronto Star, the city of Toronto filed an application for an injunction in Superior Court on Tuesday afternoon. If granted, Uber would be forced to shut down there.
There have been allegations in the United States that poor vetting of Uber drivers has resulted in sexual assaults.
But some customers don’t seem worried by the controversy.
They like the fact that when you take an Uber cab, no cash is exchanged.
Customers sign up to Uber online and provide their credit card information. Then, they are prompted to download an app that can be used to hail an Uber car from their smartphone.
Once the driver is en route, customers are able to track the car using the map that Uber provides. A picture of the driver, their contact information and the type of car are also provided upon request.
Should any problems arise, the customer can simply send a text to the driver.
Once they arrive at the destination, the money is automatically deposited into the driver’s account via smartphone.
In recent days, Uber has been in the news for its aggressive media relations practices. According to a Buzzfeed article published on Monday, Uber senior executive Emil Michael suggested that the company hire a team of opposition researchers. Their job is to find personal information on reporters who have been critical of the rideshare company.
For now, the future of Uber in Ottawa remains unclear. Increasing enforcement and regulation may drive Uber out of the market, despite passenger demand for greater competition.