I am part of a UK team launching our cab app in due course and I am posting here as our launching is drawing near.
In case you've heard of dead Uber rivals like Bounce, Splyt, Maaxi, Drivr and few others, we know of them too and have understudied what has been going on in the industry for quite some time. But that is a topic for another day, I just want to let you know that we are not going to fall into the same trap.
The main reason I am here is to inform and throw light on what has been going on in the industry for sometime and why most drivers are increasingly complaining about Uber. As we've spent a lot of resources to understand the industry, a la drivers, customers, regulation, and operating environment. I believe I am in a position to inform and educate about the industry and hopefully converse about where the industry might be headed in few years.
I will stick around this forum till our launch, so feel free to ask questions or engage me in sensible conversations please. The only caveat is I will not talk much about our brand, I will leave that to my other colleagues whose work it is when it's time, but we are nothing short of great!
First, why has there been so much downtime these days in the Ph sector especially with Uber?
I have heard a lot of drivers complain about Uber because there is not as many jobs as before and dead miles are increasing too. Most drivers blame Uber for recruiting too much of them.
I agree that Uber has too many drivers than necessary and would make sense if there is a cap on the number of drivers they have as that will make existing jobs go around sufficiently. When we did our math, any operator can reach their customers within 5 minutes in London with around 10,000 drivers. Uber has a flipping 35, 000 or more and has no specific plans to manage the numbers. The problem as I see it is that the guys at Uber are greedy because they don't want to leave the chance for any emerging competitor to use an open ended driver's recruitment strategy - which might leave them out.
Second, Uber is not to blame for all the current problems, there is unofficial recession too.
Regular drivers will attest to the fact that biggest users of cab especially in the city are Middle Easterners and foreign students living, studying and doing business here. The oil palava is affecting how much of these people visit London and we have seen the effect in other sectors such as luxury and retail. As Brexit negotiations start next year, there is likelihood that luxury, retail including private hire will suffer more.
Although, I see oil prices bouncing back soon, 2017 might be a tough year for Uber drivers and you guys should brace up for it especially if Uber alone is your only source of income. Though, it would not all be Uber's fault but they will have a role to play if they want to lessen how much difficulty drivers would go through. But will they? I think they will respond a bit but not sufficiently.
This is how the next 12 months will pan out.
I know there is Karhoo but Karhoo is in the class of minicabit and the defunct minicabster. I think the business model will crack too if there is a serious Uber competitor. However any competitor that wants to survive will not compete on how much they can spend, as no one can face Uber based on wallet strength.
The likes of Lyft or any foreign competitor will not survive in UK too, I think the market is better left for home grown players who understand this complex market
I think the next 12-24 months will be the most interesting in the industry ever as there will be so much competition, regulation and opportunities for drivers. But there will many many uncertainties too.
Brace up folks and prepare for the future.
In case you've heard of dead Uber rivals like Bounce, Splyt, Maaxi, Drivr and few others, we know of them too and have understudied what has been going on in the industry for quite some time. But that is a topic for another day, I just want to let you know that we are not going to fall into the same trap.
The main reason I am here is to inform and throw light on what has been going on in the industry for sometime and why most drivers are increasingly complaining about Uber. As we've spent a lot of resources to understand the industry, a la drivers, customers, regulation, and operating environment. I believe I am in a position to inform and educate about the industry and hopefully converse about where the industry might be headed in few years.
I will stick around this forum till our launch, so feel free to ask questions or engage me in sensible conversations please. The only caveat is I will not talk much about our brand, I will leave that to my other colleagues whose work it is when it's time, but we are nothing short of great!
First, why has there been so much downtime these days in the Ph sector especially with Uber?
I have heard a lot of drivers complain about Uber because there is not as many jobs as before and dead miles are increasing too. Most drivers blame Uber for recruiting too much of them.
I agree that Uber has too many drivers than necessary and would make sense if there is a cap on the number of drivers they have as that will make existing jobs go around sufficiently. When we did our math, any operator can reach their customers within 5 minutes in London with around 10,000 drivers. Uber has a flipping 35, 000 or more and has no specific plans to manage the numbers. The problem as I see it is that the guys at Uber are greedy because they don't want to leave the chance for any emerging competitor to use an open ended driver's recruitment strategy - which might leave them out.
Second, Uber is not to blame for all the current problems, there is unofficial recession too.
Regular drivers will attest to the fact that biggest users of cab especially in the city are Middle Easterners and foreign students living, studying and doing business here. The oil palava is affecting how much of these people visit London and we have seen the effect in other sectors such as luxury and retail. As Brexit negotiations start next year, there is likelihood that luxury, retail including private hire will suffer more.
Although, I see oil prices bouncing back soon, 2017 might be a tough year for Uber drivers and you guys should brace up for it especially if Uber alone is your only source of income. Though, it would not all be Uber's fault but they will have a role to play if they want to lessen how much difficulty drivers would go through. But will they? I think they will respond a bit but not sufficiently.
This is how the next 12 months will pan out.
- Expect multiple percentage cut from Uber in the next one year from 20-25% to 15% circa; it will not be a choice but a competitive pressure.
- Brace up because Uber might likely buy out Gett: Gett is just one of the less performing cab apps with a difficult chance of surviving the next two years. If Uber don't buy them, a deal that would be difficult because BC drivers will be hostile to such acquisition, Gett might die off soon or sell to a buyer that will make nothing of it.
- Hailo will die off soon. Of course they became part of Germany's MyTaxi recently, chances of surviving is not high.
- In the next 12 months, expect 2-3 Uber competitors in succession: but of course not all will survive in the short run.
- Expect a new player in the black cab sector that might challenge the Ph sector though they have to come soon enough or never,.
- Expect more regulation from tfl which would affect operators and drivers.
- The end of price surge is near. Either through regulation or competition, Uber will stop the surge pricing or amend it somehow.
I know there is Karhoo but Karhoo is in the class of minicabit and the defunct minicabster. I think the business model will crack too if there is a serious Uber competitor. However any competitor that wants to survive will not compete on how much they can spend, as no one can face Uber based on wallet strength.
The likes of Lyft or any foreign competitor will not survive in UK too, I think the market is better left for home grown players who understand this complex market
I think the next 12-24 months will be the most interesting in the industry ever as there will be so much competition, regulation and opportunities for drivers. But there will many many uncertainties too.
Brace up folks and prepare for the future.
