Will Uber Destroy Traditional Mini Cab Firms?

Will Uber Destroy Traditional Mini Cab Firms?

There has been unending confrontation between London’s taxi drivers and Uber. The drivers feel that Uber is undercutting them by their introduction of low prices.

They claim that Uber is not following laid down rules of pricing.

Traditional taxi firms are the one which will be affected greatly by the new Uber pricing. Previously, before the introduction of Uber in the UK, there were few minicab firms in operation e.g. Addison Lee.

The firms had small operations and often relied on bookings via telephone. Uber has introduced stiff completion in the minicab industry by reducing their prices and allowing customers access cabs using an app on their Smartphones.

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Traditional taxi firms have recorded a sharp decrease in the number of private vehicles they have acquired over the last three years.

Uber has faced competition as well as there are many small firms who are struggling to offer an app to their customers similar to that of Uber.

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For instance, Swift Cars who run minicab Marylebone routes has launched it’s own app which is growing at a faster rate.

Many traditional cab operators are lobbying their lawmakers to pass a bill in parliament that will regularize the number of cabs can hire over a given period.

If the growth of Uber continues, then the future of traditional mini cabs operators remains unclear.

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