Can Minicabs Really Survive In An Ever Growing Digital App World?

By January 18, 2017 Travel No Comments
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There has been talk around the globe about how Uber has transformed public transportation, especially in terms of minicabs. One of the main concerns that minicab firms have are the competitive fares customers can expect from their Uber drivers.

You might assume that since ordering an Uber is similar to ordering a private car, these companies have the most to lose.

When in reality, it’s your traditional cabbies that are experiencing the highest losses.

There are a variety of ways that Uber is transforming the public transportation industry, primarily by offering cars at any location at any time within a few minutes.

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Growth

Between 2013 and 2015, the total number of private hire vehicles grew to 62,800 which is a 25.9% increase, though the total number of minicabs also dropped to 3000, meaning that there’s a strong competitor in the market that’s taking the business.

Decline

There are several minicab firms that have described a noticeable loss, especially Atlas Cars a once busy minicab Bloomsbury firm. According to Saqib Abbasi, a part of Atlas Cars, they have closed 3 of their locations and have laid off approximately 90% of their total staff.

Other competing minicab companies are trying to compete with Uber’s highly technological interface such as Swift Cars but to no avail.

One main concern that not only affects the companies but affects passengers as well is the fact that minicab companies have had to be laxer about their hiring practices.

As Uber allows relatively anyone with a driver’s license to become an independent contractor, minicab companies have had to as well, forcing them to let go of their strict hiring practices.

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This makes it much more difficult to put drivers through the right screening processes to make sure professionals are the ones behind the wheel.

Whether or not Uber is great for independent drivers is still a debate, as there are protests against their unfair treatment of employees around the world but yet the company doesn’t have any issues recruiting new talent.

Nevertheless, Uber is a competing part of the private hire industry that puts a strain on other cabbies throughout the UK.