EDITORIAL

John Bliss

It appears that both BC. Premier John Horgan and Surry Mayor Doug McCallum are both not clear on the concept of healthy competition. Owing to political expedience on both sides, they prefer fighting with each other over Uber than come to grips with the fundamental realities of the problem.

The problem is this: market fragmentation is an economic phenomina that is non other than an infectious disease that is guaranteed to kill a vital sector of the economy. Market fragmentation is the source of friction between Uber and the taxi industry.

John Horgan

Mr. Horgan obviously fails to understand that Uber’s business model fragments the industry as opposed to healthy competition. Here’s what he had to say: “I think the way forward for Surrey and for Mr. McCallum is to listen to the citizens of his community who want competition.”

Ride hailing is indeed a novel marketing innovation for the industry to follow provided that the taxi/ride hailing companies do not compromise the ability of drivers to earn a living wage by oversizing their fleets. Uber has so severely fragmented the market that neither taxi nor ride hailing drivers can earn anything even remotely close to a basic minimum wage. They simply cannot earn a living and both Uber and the Taxi companies know that and could care less.

The Vancouver-Surry taxi companies could, for the most part, care less about the impact of Uber on driver’s personal income, but they are concerned about something else, the medallion system and the monopoly it provides.

The medallion is a transferrable taxi license the number of which is limited by law in most municipalities and provides the current taxi companies in Surry and Vancouver a monopoly in a highly protected market. Its intention was to prevent the streets from being clogged with empty taxis and ensuring that drivers could earn a decent living and be an attractive career option for young persons entering the work force. In other words, the medallion system recognized taxi driving for what it is—a respectable profession.

Governments have thus unwittingly given the cab companies a lucrative monopoly to the detriment of drivers and the riding public. Fixed stand rents paid to cab companies and usurious subleasing fees paid by driver-owners to these companies rendered yet again impoverished and angry drivers and a severe deterioration of service quality to the public. Little wonder drivers and customers are flocking to Uber and Lyft like flies to honey.

Drivers, in general don’t see a significant improvement in fares but Uber does not charge them a fixed stand rent or subleasing fees. Their net income is somewhat higher but not high enough given the number of cars Uber et al insist on having in their fleet.

Consumers, on the other hand are attracted to Uber owing to faster response time—but a less well trained and professional driver behind the wheel unless he’s a defecting cab driver.

The BC government would do well to follow Quebec’s example with its new legislation Bill 17 which takes the regulation of public transportation by automobile away from municipalities and into the hands of a provincial taxi commission. It kills the medallion system and allows taxis and ride share to pick up fares in any jurisdiction in which they clear.

It’s a serious failure of leadership for governments failing to bring taxi regulation into the 21st century within the spirit and advice of Canada’s Federal Competition Bureau’s report of November 26, 2015 titled Modernizing Regulation in Canada’s taxi industry . Governments, please take the advice of the bureau’s advice to heart.

Problems with Uber and TNC’s in General

Persons who use TNCs such as Uber or Lyft should view the CBC’s October 22, 2018 broadcast of “The Fifth Estate” titled “The Problem With Uber” and it’s detrimental impact on the quality and safety of the riding public in Taxis, Limousines and Private for Hire such as Uber. The program is shown below.

Most governments have strict laws regarding such modes of travel commonly referred to as the taxi or livery industry.  The problem is that Uber came along and barged into the market place like a bull in a china shop with absolutely no regard for local laws governing such services.  They have even failed to take criminal background checks on new and existing drivers.

Calgary, for example requires all cab drivers to have an annually updated enhanced criminal background check which includes cases pending before the courts and court restraining orders. Uber drivers get a criminal review on their first license but it’s not clear on their license renewal as they are not required to have local regulators do it–they entirely rely on Uber’s purported annual review if any.

Fortunately, unlike the taxi industry, they do not service women’s shelters or unaccompanied children.

So which would you rather have show up at your door, a screened professional driver who’s undergone exhaustive driver training and  regular criminal checks or someone possibly unworthy on any trust you would bestow upon him.

 

Centralized Taxi Dispatching–a godsend for taxi drivers & passengers

The consensus of Calgary’s politicians as witnessed at their Standing Policy Committee (SPC) on Community and Protective Services meeting of last October 3, 2018  appears to be that a taxi centralized dispatching system—a godsend for an industry beleaguered by the invasion of Uber, is on its way to Calgary.

Centralizing taxi dispatch will undoubtedly eliminate horrid response times wheelchair bound travellers experience, and substantially improve the quality of service to the overall general public.

ProCabby Ltd is an Ottawa based company who hopes to fill the bill right here in Calgary and across North America and overseas.

Their model works like this: A customer calls a cab in the usual fashion or with ProCabby’s App itself on their smartphone and the cab that is physically closest to that customer will get the trip regardless the company that cab is affiliated with.

Travellers can use it in any city where ProCabby is available. Right now, they are launching in over 30 North American cities.

The reality is that few customers really care which taxi company transports them. All they really want is a highly professional driver with a clean car showing up in a timely fashion to carry them from A to B at reasonable cost without incident.

Committed and well-trained full-time career drivers are the only people that can provide such service—if local governments will let them.

The taxi industry is one of the most regulated industries in the economy—and it shows with the adnauseous red tape every time a company tries to respond to changing market conditions such as sizing their fleets to match demand. It all too often takes years before the bureaucrats and politicians are willing to resolve such issues while the public suffers.

The result was Uber barging into the market like a bull in a china shop without any regard for local legislation—and bamboozle the public into believing that Uber is their salvation with cheaper fares (Taxi fares are regulated, and Uber deliberately undercuts them), fueled by their lie that taxis are never clean, and the drivers are obnoxious.

The truth is that ProCabby’s presence in any city will substantially improve the quality of service to the public and boost the incomes of drivers and the companies who employ them.
ProCabby offers the public well-trained and professional drivers who will be on time for your trip. I can only wish them the best of luck in all of their endeavours.

Both customers and drivers are urged to register now even if the service is currently unavailable where you live as your registration will function as a petition whenever ProCabby has to deal with local governments and taxi companies.  Click here for more information on their website or e-mail support@procabby.com .  You may phone or text them at 1-833-PROCABY (1-833-776-2229)

For the record, I was the first speaker at Calgary’s SPC meeting of October 3rd so click here to hear my presentation and the committee’s reaction.