Learning from Uber’s model

Traditional taxi companies must put the customer first by embracing technology

he rapid expansion of online taxi services like Uber and Careem has started a healthy debate about how car services operate in the world’s major cities. Sergio Perez / Reuters

The rapid expansion of Uber and Careem has started a healthy debate about how car services operate in the world's major cities. Uber, the multinational online taxi innovator, has recently cute fares in Abu Dhabi by 17 per cent. ­Rival Careem said that it will not lower its fairs in response. Competition is, of course, an important aspect of a strong marketplace. Taxis regulated by TransAd, the Centre for Regulation of Transport by Hire Cars, can learn from online taxi business models to keep their services competitive.

Uber and Careem excel because they put the customer first. Uber, in particular, has a strong customer service centre ready to assist with any problem or issue that can arise in a taxi journey. They don’t reinvent the wheel to achieve good customer service, rather they make sure they are available where most of us spend a great deal of time: smartphones.

If you have an issue, you can send an email or communicate via the Uber app, rather than spending time calling a service centre and waiting on hold.

To stay competitive, local taxi companies can and should adopt this strategy from Uber’s playbook. TransAd needs to create a more modern smartphone application that will provide easy customer access to all aspects of the taxi experience. Many Uber customers like that they can charge their taxi trips and don’t have to worry about whether the driver will have change for a large note. Providing an easy method of credit card payment is a must in an increasingly cashless society.

Uber has radically altered the global taxi industry. From Melbourne to New York, Uber’s presence has sparked passionate debates about how we get around and what we should expect from the experience. It is no different in this country. The best response to Uber’s expansion is for local taxis to mimic and incorporate the aspects of their product that people likw and seek out. While these changes might require an initial and modest infrastructure investment, they will pay long-term dividends for the overall taxi landscape.