Where to start with all this?
This is a comment piece in today's Glasgow Herald (actually, now just called The Herald, but its previous title provides the clue for readers south of the border...).
So, unsurprisingly, unlike many not dissimilar articles over the year, this one focuses on the Scottish angle rather than the normally London-centric pieces of this ilk.
But it suffers the same shortcomings - and a major clue is in the usual use of the term 'ride-hailing' near the start. Which, of courses, conveys the immediate impression that Uber is more different to what went before than what it actually is. (Excepting, of course, the global brand, and app-based booking. And while the former is certainly new, the latter was simply pushing the technology envelope, as the ready adoption of app-booking by the traditional industry demonstrates.)
And the misleading ride-hailing term is related to another major deficiency, mainly the impression that the private hire sector simply didn't exist until Uber arrived. And
still doesn't exist, apart from Uber, at least if all your knowledge about the Scottish industry is gleaned simply from this article
Funny thing in that regard, though, is that mention
is made of the fact that Uber is licensed as private hire rather than as taxis. But, again, you'd be forgiven for thinking that
only Uber are licensed as private hire.
But like similar articles I read in the London-centric mainstream press years ago, it makes for easier comment if you completely ignore the capital's minicab sector, and instead portray it simply as London's black cabs v Uber
But that's at the fundamental level, and the rest of this below is, while insightful in many respects, in other regards displays a distinct lack of nuance, and some simply misleading/incorrect stuff.
Another related example is several uses of the term 'fleet taxis and black cabs', which seems to be trying to portray a difference between the two. Not clear precisely what that difference is, though. If 'fleet taxis' means a taxi circuit, then surely that's 'black cabs' too?
(Unsurprisingly the author seems to be some sort of licensing practitioner - another recent piece by the same author quoted a Glasgow professor as saying that a "24-hour [alcohol consumption) model is increasingly becoming an expectation"
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Which in turn reminds me of yesterday's Hull piece, in which the judge said that women are
'entitled' to get so drunk they'll get into the back of a taxi/PHV with a predatory driver
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And that police won't even investigate until the same driver tries it on with another passenger
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)
Could traditional taxis triumph over Uber?https://www.heraldscotland.com/opinion/ ... umph-uber/The arrival of Uber in the taxi industry marked a global revolution, offering a new level of convenience and affordability through its app-based ride-hailing service. With just a few taps, users could summon a driver, track their route in real-time, and pay digitally – a stark contrast to the traditional method of hailing or pre-booking taxis.This model quickly caught on in Scotland in cities like Edinburgh and Glasgow, where Uber's presence rapidly grew. In October, Uber officially launched in its third Scottish city, Aberdeen. A September 2017 study reported that since its introduction, over 400,000 people have taken an Uber in Scotland.
Ride-hailing apps like Uber have dramatically challenged the dominance of traditional taxis, long considered a staple of urban transport in Britain, and serving as a familiar sight on our streets. Uber’s flexible pricing attracted cost-conscious passengers, while its ease of use appealed to tech-savvy consumers. This shift disrupted the taxi industry, creating a divide between fleet taxis and black cabs and the more flexible, app-driven services that have reshaped urban transportation across the world.
Uber's dynamic pricing model, known as surge pricing, allows fares to fluctuate based on demand. During low-demand periods, passengers can benefit from significantly cheaper rides, appealing to budget-conscious users. However, during peak times – such as after major events or busy nights – prices can rise sharply, sometimes reaching inflated levels. While surge pricing ensures ride availability during high demand, it has sparked controversy, with some consumers feeling overcharged in these situations.
In contrast, fleet taxis operate on fixed meter fares that are regulated and offer some degree of transparency and predictability for passengers. While the Civic Government Scotland Act of 1996 mandates that fare scales be reviewed at least every 18 months, black cab drivers can charge lower fares if they choose, creating a measure of flexibility. Consumers appreciate knowing upfront that their fare won’t suddenly spike due to demand.
However, black cab fares are generally higher than Uber's during non-surge times, and cab drivers face mounting pressure to compete in an increasingly tech-driven market. Furthermore, with Uber, the fare is set before the ride begins, providing certainty, whereas in taxis, unpredictable factors like traffic jams or slow routes can cause fares to rise as the meter runs. As a result, many passengers now prefer ride-hailing apps, eroding the market share of black cabs and fleet taxis.
The licensing requirements for Uber drivers and taxi drivers in Scotland highlight a regulatory divide. Uber drivers operate under private hire licenses, which are relatively easy to obtain. Under the Civic Government Act of 1982, local councils in Scotland have significant authority to adjust licensing requirements, often adding extra hurdles for those seeking taxi driver licences. These licences allow drivers the added privileges of public hiring and street hailing. This regulation aims to ensure reliability and safety, making traditional taxis the go-to choice for city transport.
London’s iconic black cabs are renowned for their strict training, including the rigorous "Knowledge of London" test, established in 1865 to ensure drivers expertly navigate the city. Candidates spend three to four years memorising 320 routes and over 25,000 landmarks within a six-mile radius of Charing Cross, passing through seven stages of exams before obtaining their licence.
While London’s test is especially demanding, several areas in Scotland, such as Glasgow, Aberdeen, Perth, and South Lanarkshire, also require taxi drivers, but not private hire drivers, to pass local knowledge exams tailored to their respective regions. These tests ensure that drivers can navigate local streets, landmarks, and key locations.
Uber’s model democratises access for drivers, allowing many to join with minimal upfront costs, often using personal vehicles and requiring no extensive training. This accessibility has opened driving as a source of income to a broader range of people, but it has also intensified competition with traditional taxis. Fleet taxi drivers, and in particular black cab drivers, facing more stringent regulations and higher costs, may feel that Uber's more lenient licensing allows it to undercut prices and erode their customer base. Tim, a black cab driver I spoke with, said many taxi drivers feel unsupported by government and local councils, viewing Uber as benefitting from preferential treatment and reduced oversight.
This sense of regulatory inequity is further intensified by Uber's legal battles in cities like London where, despite ongoing safety concerns and licensing disputes, Uber has repeatedly secured operating licences. For instance, in a pivotal case, Uber was granted an 18-month licence in London after demonstrating progress in safety measures, despite historical failings concerning incidents of non-licensed drivers borrowing Uber licences and fraudulently accessing the platform.
Transport for London reported that there were at least 14,000 fraudulent trips in London in late 2018 and early 2019 and that dismissed or suspended drivers had been able to create Uber accounts and carry passengers. While the court found Uber had made enough improvements to continue operating, critics, including the The Licensed Taxi Drivers’ Association, argue that Uber’s scale makes it difficult to regulate effectively but too consequential to fail. As Uber and similar platforms continue to expand, the regulatory disparities create an increasingly challenging environment for taxi drivers, who must balance financial and regulatory burdens in an industry now shaped by ride-hailing giants.
In response to safety concerns, Uber has introduced a range of in-app safety features designed to reassure passengers and improve security. These include real-time GPS tracking of rides, which allows both riders and Uber to monitor journeys; a ride-sharing option, enabling users to share their trip details with friends or family; and an emergency button, which instantly alerts authorities if a passenger feels at risk.
These features have contributed to many users viewing Uber as a safer mode of transport, particularly among younger generations who value the convenience of app-based security tools. However, older generations often feel more comfortable relying on traditional taxi companies, which are known for their rigorous driver training and comprehensive vehicle checks. For these users, the established procedures and face-to-face familiarity of traditional taxis offer a level of trust that app-based services may struggle to match. This contrast highlights generational preferences in balancing convenience with perceived safety and regulatory standards.
The rise of Uber has created a divide in driver experiences between those working as taxi drivers, and those working for the platform. Uber drivers in Scotland, such as Amir Humza from Glasgow, report a decline in earnings despite rising costs for customers, with drivers’ pay decreasing gradually while expenses, such as fuel and insurance, climb.
Many Uber drivers express frustration at the lack of transparency in how fares are calculated, and GMB Scotland, which represents some Uber drivers, has voiced concern over Uber's failure to account for these rising expenses. Though Uber claims its drivers are guaranteed the National Living Wage and engages regularly with unions, drivers like Humza feel the system is stacked against them.
In contrast, in response to taxi drivers' concerns over rising operational costs, Glasgow's licensing committee recently approved a 9.72% fare increase and adjusted the evening surcharge, allowing an extra £1.50 to be charged starting at 9pm. instead of 11pm. This decision highlights the advantages of being part of an established taxi network, where drivers can benefit from regulatory support and fare adjustments through the formal licensing process.
Looking forward, the long-term sustainability of both industries in Scotland is uncertain. Uber’s rapid expansion suggests a potential for dominance, but ongoing consumer and regulatory scrutiny over issues like driver pay, passenger safety, and fairness may lead to a revival of the traditional taxi, particularly as they evolve to incorporate app-based booking. Ultimately, a key question remains: Can Scotland’s market accommodate both Uber and traditional taxis, or is the competition destined to favour one over the other?