this email popped up in my inbox this weekend. The opinion of someone on the inside well worth reading
YOUR DISPATCH PROVIDER JUST BECAME YOUR COMPETITOR
A note to the taxi industry,
As you all know, the entire private hire industry has been shaken with the news of Autocab selling to Uber. A lot of people have been contacting me asking my thoughts on the matter, so I thought I’d share…
Firstly, lets address why Uber would want to buy Autocab?
Taxi companies have beaten uber, who now cannot attract drivers. Now uber wants to contract that work to taxi companies, so they may get stronger in areas they couldn't win so they can take out taxi companies.
I'm currently still in shock after hearing the sad news that Autocab would sell to a company that has destroyed so many of its client’s businesses. Uber globally has been enemy number 1 to the taxi industry. I headed up New Business Sales for Autocab and my opening line would be “Autocab’s technology will help you fight Uber so your business can survive”. Imagine doing national road shows on how to 'combat uber', and labelling them as ‘the enemy’ to then sell out and allow this ‘enemy’ to take over Autocab? A firm that has put countless taxi operators out of business and is currently the biggest threat to the industry.
I live in Manchester, the taxi firm I use is Street Cars. Street Cars are a 700-car firm who day on day battle with Uber. They are Autocab’s Show site where I would often take customers to show them how a professional firm is fighting Uber. Street Cars today, in my opinion, would be 2,000 cars strong if it was not for Uber. Uber and Street Cars go head to head fighting to become Manchester City centres premier taxi provider. Following yesterday's announcement, Uber is now Street Cars dispatch provider and holds their data.
Year on year Autocab’s financials would be published and I would sit in a room whilst it was discussed how to spin the declining numbers. Usually blaming excessive spend on development. This year with the closing of international offices and yet again financial decline, I knew the only option they had was to sell. Autocab spent the past few years trying to sell, however, no-one wanted to buy a declining business. I know desperate times call for desperate measures but there must be some sort of sense of loyalty and care for your customers.
I’m very intrigued to see how the Autocab management team will look to frame this take over as a ‘good’ thing for their customers, please be wary. It's very difficult to see how Uber, a company hell bent on monopolising the private hire industry, will be looking out for the independent operators.
Say goodbye to your data (as Autocab once said) ...
Remember when Autocab began spreading misleading propaganda about iCabbi following the Renault deal? Apparently, the French were going to steal data and put driver-less cars on the roads... This inevitably turned out to be nothing but malicious and petulant lies to tarnish their competition. For Autocab to then sell out to public enemy number 1. It really shows the lack of respect they have for their customer base.
When the COVID-crisis happened, I was inundated with calls from Autocab customers as they had seen on LinkedIn, iCabbi offered a 3 months payment holiday during the COVID crisis.
Autocab mocked up the "500k" incentive - a complete marketing ploy in my opinion. I had calls from customers who had 30 cars on the road but were being charged for 300 licences. Now I am being told they are offering deferred payments on outstanding bills from the COVID period, with these payments having to be made in October. So just as your business begins to bounce back, Autocab customers will be hit with a deferred payment invoice.
For any Autocab customer, I believe it’s ludicrous to remain loyal to them, this business only views you as a number rather than a customer. They proved this today. Unfortunately, I never had the honour of meeting Falah Abod. I hear nothing but great things about him as he created Autocab for the purpose of helping taxi companies for good. It makes me sad to think what he would think today of the new shareholders decision to betray the core values he fought for.
There are other dispatch providers out there who will look after their customers over their profits.
There is a reason why Autocab requires you to sign a 2-3-year contract whilst their competitors work on 30 day rolling. If you are in a contract with Autocab, I implore you to get legal advice on whether yesterday's announcement releases you from that.
I think what everyone needs to ask themselves is how can someone be their competetior and their supplier at the same time? You may aswell hand them the keys to your office!
I am proud to be partnered with companies such as Riide, an app that is made by operators for operators. I will continue to work with companies in the private hire industy as we try get through this difficult time together.
I am happy to speak to anyone who needs any advice or help.
If anyone would like to speak to me further you can get me on
azmat@dotted.org Azmat Sherwani
CEO
Dotted
www.Dotted.org (Everything stated in the above text is the opinion of Azmat Sherwani)