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| Plymouth operator accuses Uber of predatory pricing http://www.taxi-driver.co.uk/phpBB2/viewtopic.php?f=2&t=41333 |
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| Author: | StuartW [ Tue Apr 01, 2025 7:18 pm ] |
| Post subject: | Plymouth operator accuses Uber of predatory pricing |
I wouldn't be surprised if the predatory pricing angle has been examined already, but who knows? From past experience of this kind of thing, don't think I'd even bother lodging an official complaint Plymouth taxi firm’s anger at Uber as price war erupts https://www.plymouthherald.co.uk/news/p ... r-10071471 'We welcome fair competition' The bosses of one of Plymouth’s largest private hire cab firms have accused taxi app company Uber of “predatory pricing” and say the new arrival is undercutting and endangering existing taxi firms. Huw Isaac and David McIntosh, of Need-a-cab?, have written to Plymouth City Council arguing that Uber is “destabilising” the taxi industry in the city by charging a fraction of the price asked by established operators. They claim this could lead to taxi firms going bust - leaving Uber with a monopoly. They cite the Competitions Act which makes it illegal for a company to set prices at an unrealistically low price in order to wipe out competition. Mr Issac and Mr McIntosh said Need-a-cab? charges £7.10 for a journey from Devonport Road to Royal Parade, but claimed, in their letter to the council, that an Uber ride can be taken for just £1.67. Mr McIntosh told PlymouthLive: “We are happy with competition but not happy about unfair and possibly illegal methods of competing.” Uber said it was pleased Plymouth City Council’s taxi licensing committee last year permitted it to operate in Plymouth. It said the firm was only satisfying unmet demand in Plymouth and adding to competition in the city. It did not talk about pricing, but Uber sometimes gives introductory offers, especially when entering new markets. Uber’s website carries details of a promotion for first-time Uber riders in some areas, but not Plymouth, for example. The website said that “on average, an 11-minute ride in Plymouth costs £10.” Plymouth City Council said it is not responsible for setting fees or tariffs for private hire vehicles, in the way it does for hackney carriages. A council spokesperson said: “Any concerns about predatory pricing queries should be made to the Competitions and Markets Authority (CMA).” Last year, the council said Uber, and its rival Smartzi, could start operating in Plymouth. It gave Uber permission to take on 160 drivers, and the firm today told PlymouthLive it has 160 drivers in Plymouth. Both app-based ride companies were given private hire vehicle operators’ licences. Uber passengers use an app to connect to a driver who uses their own vehicle. They can pick up passengers for a journey which is pre-paid through the app. Uber has operated across most major towns and cities in the UK for several years. The app tracks trips, has driver ratings and emergency support. The Need-a-cab? Bosses said they “welcome fair competition and have prepared for it over the years”, but they feel that Uber is “undercutting competition in Plymouth and discouraging new entrants into the trade”. An Uber spokesperson said: “We are pleased to have been granted a licence to operate in Plymouth by the council, which will help boost earning opportunities for drivers, provide passengers with greater transport options across the city and support the local economy.” |
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| Author: | StuartW [ Tue Apr 01, 2025 7:22 pm ] |
| Post subject: | Re: Plymouth operator accuses Uber of predatory pricing |
Quote: Last year, the council said Uber, and its rival Smartzi, could start operating in Plymouth. It gave Uber permission to take on 160 drivers, and the firm today told PlymouthLive it has 160 drivers in Plymouth. As per last time round, I'd guess that's a tad misleading - more likely they've paid for an operator's licence allowing them to take on 160 vehicles, while it sounds above like the council has imposed a cap of some kind. And it'll be vehicles anyway, not drivers
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| Author: | Sussex [ Tue Apr 01, 2025 9:20 pm ] |
| Post subject: | Re: Plymouth operator accuses Uber of predatory pricing |
What Uber tends to do when they open up in a new area is to offer loads of discounts, often £5 or £10 off a fare. So that £1.67 job doesn't surprise me, but I doubt it's an ongoing discount. |
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| Author: | edders23 [ Wed Apr 02, 2025 10:52 am ] |
| Post subject: | Re: Plymouth operator accuses Uber of predatory pricing |
Sussex wrote: What Uber tends to do when they open up in a new area is to offer loads of discounts, often £5 or £10 off a fare. So that £1.67 job doesn't surprise me, but I doubt it's an ongoing discount. In some parts of the world where competition has remained fierce prices have stayed low I believe. |
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