One of the hottest battles on the road is about who has the right to take passengers to their destinations. New ride hailing services – such as Uber and Careem – are bringing new employees on-board by allowing them to use their own vehicles and work as per their convenience.
In any case, don’t get us wrong as we empathize with traditional taxi drivers, however, older players getting itchy is a phenomenon we have seen many times before. Undoubtedly, horse cart owners wouldn’t have liked it when people started using cars. Adding to that, we can see the same sort of competition taking place between traditional TV and the on-demand content industry, which is now being led by the likes of Amazon Prime, Hulu and Netflix.
Moreover, whenever a new kid in the block comes up with a new way to get things done, emotions generally tilt in favor of that kid. Therefore, instead of being upset with the new players, old players need to understand their weaknesses and should realize that had they done things properly, new players would not have achieved success.
Whatever is your view on this matter, the duel of traditional cabs and ride hailing services has become an interesting subject. The fact that the ride hailing services have minimized waiting time and offer quick payment interaction (that traditional taxis lack) proves that they have successfully managed to acquire competitive edge over traditional taxis.
Moreover, since there’s no check and balance in Pakistan when it comes to issuing permit to traditional cab drivers, many customers prefer on-demand ride services due to safety concerns. On the contrary, companies like Uber and Careem run a background check of their drivers before hiring them.
Adding to that, traditional cab drivers don’t charge by any rule instead they often over-charge their customers. On the other hand, ride hailing services offer estimated fares when customers enter their pick and drop-off locations via GPS in their phones.
Furthermore, the main reason that ride hailing services have been making headlines is because of the fringe benefits they offer to its drivers. For instance, the companies offer weekly and monthly bonuses to their drivers in order to retain them.
This brings us to the conclusion that the efficient use of smartphones by the ride hailing services makes it much easier and convenient for both, drivers and passengers.