Mixed Response to Launch of Uber's Local Cab Scheme
In recent weeks, Uber has launched its new ‘Local Cab’ feature in several locations across England. A pilot scheme took place in Plymouth and was considered to be a success. If you’ve not heard of the Local Cab feature yet, here’s a quick rundown of what it is.
What is Uber’s Local Cab Feature
Uber’s ability to offer the Local Cab feature stems from their acquisition of Autocab earlier in the year. When the feature is selected within the Uber app, customers are routed through Autocab’s iGo marketplace and matches them with a local operator who can conduct the journey. The booking is made with the local operator but all details and payments are processed within the Uber app. The Local Cab feature can now be used in Plymouth, Exeter, Bedford, and Oxford.
Positive Feedback from Pilots
Industry magazine, TaxiPoint, recently conducted several interviews with a series of operators involved in the launch of the Local Cab feature in their areas. The interviews, published in their September issue, gave favourable feedback on the scheme.
The operators that TaxiPoint spoke to (001 Cars in Oxford; Key Cars in Bedford; Need-a-Cab Taxis in Plymouth) all highlighted that the past year has been incredibly difficult for the industry. Partnering with Uber has allowed them to recoup some of their losses and begin a strong recovery, post-pandemic.
All the operators had experienced a massive uptake in business to the point where they are having to recruit more drivers. David McIntosh, Director of Need-a-Cab Taxis, even shared that they’ve had drivers approaching them from other operators requesting work from them. This has all been down to their partnership with Uber.
Considering how often the Uber app was opened on a daily basis in these areas before the scheme was launched (between 15,000 – 65,000 times a day), the increase in business is perhaps no surprise.
But not everyone has been as pleased about Uber’s expansion via the Local Cab feature.
Raising Concerns
In Oxford, the most recent area to pilot the Local Cab feature, taxi and private hire drivers staged a protest at Oxford Town Hall. Images from the scene show drivers holding signs saying ‘Say No to Uber Local’ and were clearly unhappy about Uber encroaching in their area. Oxford City Council have also been quite clear they are unhappy about the situation.
Speaking to the BBC, Tom Hayes, Oxford City Council’s Deputy Leader, said:
“"The waters are murky, whether you define Uber as an operator or a platform provider,"
"We have not licensed Uber in the city. We haven't done that because we wanted to support the local taxi trade, whether that's private hire or Hackney."
Mr Hayes also accused Uber of trying to enter the market ‘through the back door”. Neither Uber or 001 Taxis contact the council prior to the launch. Oxford City Council’s legal team are reviewing the situation.
It’s clear that despite the Competition and Markets Authority’s clearance of Uber’s acquisition of Autocab, there are still concerns. While some are clearly benefitting from Uber’s Local Cab feature, others believe this will be at the expense of the traditional local operator. Only time will tell whether Local Cab will have a significant impact on local taxi and private hire firms.
It‘s a changing industry, and it can be hard to keep track of all the news and events. To be sure you’re up to date, make sure you follow us on social media to stay in the know. For a frank and unbiased discussion of industry news, you can also check out our ‘What Time You On ‘Til?’ podcast, available on all major platforms.