Wednesday, May 17, 2017

Who Even Takes Taxi Anymore?!?!

I stumbled on this Yahoo Fin article which had the original Value Penguin post about this.

Take note that the values above are supposedly BEFORE PROMOTIONS. That means coupled with promo codes + credit card tie-ups, you could be getting even bigger savings with Uber / Grab.

Another thing to note is that their calculations is based on the airport surcharge being $5, which is only true for Fri - Sun from 5pm to 12mn. For all other times, the surcharge is only $3. Ideally, you'd want to knock off $2 from their Taxi figures to make it more apples to apples, I would imagine.

That said, even with a $2 reduction across the board for taxis, taxis are still on average about 30% more expensive than Uber / Grab. Throw in promo codes and credit card promos and you could be looking at huge savings.

Why take taxis when they are more expensive and the quality variance of the drivers are so huge? With driver's rating directly affecting the driver's income (eligibility and tier for bonuses), I can say that my rides with taxi-atlernatives have almost always been very good. What are taxis ONLY advantage? Kerbside pick-up. That's it. And honestly, it's not a very big advantage, especially if I can tap a few times on my phone and save 30% of my transportation costs.

The sooner taxi companies realize that they are being raped - and for very valid, clear, obvious, transparent, economic reasons - the sooner they might just clean up their act and actually come up with a proper business model and solution which people would actually use.

As of now, only the tech unsavvy and tourists take taxis.

1 comment:

  1. Just like to add on to your last sentence, the older generation. My mum swears by taxi and refuses to take Uber/Grab even though they are essentially the same. I guess they feel more comfortable being able to flag down a cab (or call to make a booking) rather than press some buttons on an app and wait for a ride. The "human touch" is important I guess.

    I like to point you to this old post by Money Smart.

    Even though pricing have changed since then but essentially, it depends on the time of the day. More competition is always good for us. It is a matter of how we utilise the choices available to us.

    Taxis will never die i believe. And taxi companies are changing too. Look at the taxi companies joining Grab's fleet. And Comfort introduce fixed fare on their app. All in all, these changes are always great to consumers like us and to our wallets.



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