London has its own network of taxi companies. Ever since Uber started dominating the taxi service in London, the local taxi companies have struggled. Uber’s emergence has forced the London taxi companies to compete with a multinational company.
Owner of the London taxi company- My Green Taxi, Khalil Al Tarhuni says that Uber took over 50% of their business and it’s hurting their company a lot.
On the strategy Uber used to take over the market in London and other cities, Tarhuni said, “This was the game used by Uber, they started with ver very low rates especially for customers and giving better business for drivers, and even they have given like sort of gift cards for anyone setting up a new account and specially on weekends when they started they started their business in London.”
“Then they start raising their prices and taking more and more money from the drivers, so their drivers are getting hurt by them. Right now, they are taking over 50% from drivers and even their rate is very high, way higher than taxi.”
As Uber used technology to get a big market share, taxi companies have had to adapt. My Green Taxi uses an app similar to Uber to compete with the American company. “The competition pushed the taxi industry to go ahead with a better dispatch system, this is one advantage of competing with Uber.”
Khalil also says, “We tried for almost two years to create bylaws protecting taxi industry but cities all over the world don’t care, they are being impressed by this technology and powerful financial group.”
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