Around six months ago, I attended a friend’s bucks party in Melbourne’s CBD. As bucks nights usually go, we ended up at some seedy bars along King Street, where the night ended around 2 am.
As is so often the case in Melbourne, we were unable to find a taxi. Luckily my friend, who is seemingly more technologically savvy than I am, had the Uber app installed on his smart phone and used it to order a town car, which arrived around five minutes later.
For those of you that have not heard of Uber, it is a company that has been recently acquired by Google, which links customers with private drivers in 70 cities around the world.
Unlike your typical Melbourne cab, the car that arrived was luxurious and very clean (more like a limousine), and the ride particularly comfortable. The cost of the trip was similar to a taxi, with the bill charged directly to my friend’s credit card. There was also the added dimension of being able to track the location of the car on his smartphone via GPS, as well as being able to rate the driver in a similar way that a seller on Ebay is rated.
Obviously, Uber is a clear and present threat to Australia’s taxi industry, whose licences, operations and fares are strictly regulated by the state, and which operates more like a cartel, to the detriment of consumers.
Yesterday, Uber announced that it would expand its offering in Australia, offering a range of budget vehicles that will undercut traditional taxi fares. From The AFR:
The service would replace a 40 per cent discount Uber introduced for taxis booked through the app during off-peak hours. It is understood several large companies including EY had instructed staff to use the Uber app during that period to cut down on corporate taxi expenses.
Though exact fares for the low-cost Uber service were not disclosed, the app quoted a trip from Martin Place in Sydney to the international airport at between $12 and $16, compared with $75 for a hire car…
A similar service dubbed UberX has been rolled out across other cities the company operates in. The service has typically been directed at rivalling standard taxi networks.
The expansion of Uber is obviously great news for consumers, who will benefit from more reliable, clean and affordable transport options.
