Taxi Driver Online

Is the correct answer.

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IDFIMH

That assumes there is only one local operator.

If there are more than one, often the case IMO, then the Autocab operator has a huge advantage.

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IDFIMH

I wonder whether the Competition and Markets Authority May have an interest in this?

Be surprised if they did.

Looking at various articles/blogs/forums folks are saying that Autocab have 25% share of the data dispatch market. My view is that is on the high side but even so that's not exactly a monopoly.

Even if you added Uber's fleet I'm not sure as that's enough, especially when you consider Uber allow drivers to work as many apps as they want.

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IDFIMH

Uber finds new route to reach passengers in Brighton and Hove

https://www.brightonandhovenews.org/202 ... -and-hove/

The cab hailing app Uber has found a new way to reach passengers in Brighton and Hove, by buying Autocab, the software business that supports a leading local taxi firm.

The move is expected to mean that Uber will own the booking and dispatch system used by Southern Taxis which runs City Cabs and South Coast Taxis.

Southern – like most taxi and private hire firms in the country – buys the services of a booking and dispatch software supplier, with most cab companies using one of just a handful of suppliers.

Uber said that the move would give passengers the chance to request an Uber driver or one from a local firm.

And for cabbies, it is expected to mean more business as passengers searching for an Uber could be offered a local firm – and not just in places where Uber has no licence.

The controversial American business’s aggressive tactics have led to resistance and opposition in a number of towns and cities in Britain and elsewhere.

And it faces the prospect of a big tax bill – for VAT – as well as the loss of its licence in London and the possibility that Uber drivers will be classed as workers.

After losing the employment law case, Uber appealed to the Supreme Court, with a judgment due in the autumn. If it loses again, some believe that Uber’s British cab business could go to the wall.

The changes resulting from the Autocab deal are expected to take a few months at least before passengers start receiving the extra choices promised.

Southern and boss Andy Cheesman were approached but had no comment at this stage.

Autocab said: “The only thing that will change is the scale at which we operate.

“Every month thousands of people open the Uber app in places the company doesn’t operate to try to get a trip.

“Uber hasn’t launched a new city since 2016 and through Autocab’s iGo marketplace, like other existing aggregators, Uber will be able to connect these riders with local operators.

“In turn, operators should be able to expand their operations and offer more earnings opportunities to local drivers.

“We believe there are additional revenue opportunities related to our platform for other services, such as delivery and business trips.”

The company told local taxi firms: “Uber … will be directing significant additional demand to your business, supplementing your own trips, which means less dead miles for drivers and greater weekly earnings potential.”

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IDFIMH

First time in his entire life he has stayed quiet.

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IDFIMH

I can't see anyone else in their right mind signing up with Autocab from now on, but i can imagine that lots of ph companies may migrate to other systems. In my opinion, Uber didn't intend to buy a business in Autocab, just data that will or may be used to eventually oust these ph companies that use Autocab.
Very worrying.

I think the problem is it could cost a fortune to migrate to another system, only to find Uber buying them out in the future.

Everyone seems to be forgetting the pie is always the same size,the slice in this trade is always getting smaller,Ubers sole intention is to have total control of the pie and reduce the ever shrinking slice to a crumb.

When will you waken up to the threat that is there.

I don't think they'll ever have it all their own way. I can't see them getting involved with local authority contracts, minibuses over 8 seats( different licensing regime) or forward pre bookings. Additionally,there are many customers that will always prefer to actually use the phone and book with a local operator.

I can see Uber losing the 'workers rights' Supreme Court case.

I can see Uber losing the VAT case when that eventually happens.

Not sure about the London ops license appeal.

However if they lost all three, then this Autocab take over is the perfect back up for them.

If they pass work to another operator then the 'workers rights' issue isn't a Uber problem anymore.

If they lose the VAT case then they can pass on work and only pay VAT on the commission, not on the whole fare.

If they get booted out of London then they can pass the work to existing Autocab operators, and in my view the large number of new Autocab operators.

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IDFIMH

Uber will build a new version of autocab with the uber app built into it.

They will then offer it at a fraction of the cost of icabbi,sherlock etc.

Money talks they will control the UK market in a few years time

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Taxis Are Public Transport too

Join the campaign to get April fools jokes banned for 364 days a year !

If Uber or any operator are paid the fare before passing it to the driver surely VAT is paid on the full fare?

But the point is, surely, that it's an easy way to get a foot in the door of these local markets, then once they've built up a customer base, get an operator's licence and give the jobs directly to the cars. The cars could still actually be working for the Autocab firm. Assuming by that time the firm hasn't smelt the rat.

As I said, the smaller markets are more numerous and a tougher nut for Uber to crack in terms economies of scale etc, but this looks like an easier way in.


Indeed, but presumably the reason people looking to book via Uber is either because they're not regulars in the area, or they're looking for an alternative to the local firms. So they might get a lower price from Uber, say, which the Autocab operator will have to accept. Either way, these customers not really the type that the local operator could 'grab' from Uber.

Lots of ways to look at this, but it's more about the effect on competition rather than simply market share. And certainly doesn't need to be a monopoly.

But if the CMA were interested I suspect they'd be looking at the effects on local markets, since that's the most obvious place where competition might be distorted, if Uber and a local provider had a significant combined market share.