Old-school taxi firms under siege from agile new players

IN the last few years, the arrival of private-hire cars such as Uber, Hitch, or Grab on the market has transformed the mindset of taxi drivers. Previously, they used to live comfortably, facing almost no competitors. As a result, there is little or no incentive for them to improve their service and attitude. Now, given the competitive edge that private-hire cars have over them, taxi companies have no choice but to improve their services.

For one, the private-hire car service offers a more comfortable ride with passenger-friendly features. In addition, drivers often exhibit excellent customer service, in terms of their behaviour and attentiveness. Last but not least, they improved the reservation process and made it easier, faster, and more reliable for passengers (in terms of geo-localisation, service evaluation, payment facility and waiting time).

It has been a few years since these new competitors entered the market and it is now evident that their presence has helped old-fashioned taxi companies rise to the occasion, to finally meet clients' expectations. And yet, one may wonder if taxi drivers have really learnt their lesson. Does the growth of private-hire car companies really mean anything, when compared to the revolution that is actually taking place in this sector?