Today it has been announced that American ride-sharing company Lyft has acquired FreeNow. As is always the case with these big tech acquisitions, the press releases declare this “exciting news” as great for consumers, promising even better rides and experience for people needing to get from A to B.
However, the reality is much bleaker for anyone trying to grab a taxi in Ireland. I live in Dublin. A capital city that has reasonably good bus and tram connections in most situations. But once outside a “good route”, you rely on taxis, and relying on taxis in Dublin is grim.
Supply, Demand and “Cash is King”
On the odd occasion I’ve needed a taxi in Dublin, I’ve dreaded it. I have a plethora of taxi apps, ranging from FreeNow (formerly Hailo, MyTaxi and something else I’m sure), Bolt, Hola, and Lynk (the app created by drivers for drivers). At any given time or during a sudden downpour, you could be staring at your app for up to 20 minutes waiting for a driver.
When that driver arrives, I’ve often been greeted with questionable banter at best and utter anger that I’m using apps at all at worst.
I haven’t hailed a taxi on the street in a long time, but have seen plenty of “cash is king” stickers in taxis and drivers try to dodge card fees and possibly more. Reddit is full to the brim of tales from nights out where drivers’ card machines are broken, despite the operation of a taxi legally requiring a payment terminal in the car. The workaround seemingly being to tell your driver you have cash before realising at your destination you don’t and suddenly, the card machine jumps back into life, or you’re paying directly over Revolut.
This is the taxi experience that the people of Ireland have been led to believe is acceptable. I’m sure many will say it’s the few that ruin it for the many, but the few are far more plentiful and cheeky than they should be.
Ride Sharing Versus the Taxi Lobby
Ireland has Uber and, now thanks to this acquisition news, Lyft, in the market. However, both of these companies are very different in Ireland when compared with other countries. In the United States, Uber and Lyft are ride-sharing companies. Simply put, anyone can sign up to these apps as a driver, and offer lifts to people in need. It’s part of the gig economy, which in itself is problematic, yet it remains highly popular both for passengers and drivers needed extra income.
However, ride-sharing has met stiff opposition in Ireland despite the apparent need for more transport around the country.
Uber and Lyft will continue to operate in Ireland, but only as a means to access taxi drivers. But should we still stand in the way of disruption here?
It’s a debate with good points on both sides. Some point to accusations that Uber’s model effectively being to undermine the taxi industry, and drive up ride-share prices when the taxi drivers quit. Or surge pricing making Uber more expensive than any taxi option during busy periods. Yet “technology fees” by companies like FreeNow have come under massive criticism from passengers as another attempt to “price gouge”.
My Didi Taxi Experience in China
I’m just back after a trip to China which covered Beijing and Chongqing, two of the world’s largest mega-cities. Beijing is sprawling, depending heavily on metro and bus connections. Chongqing is similar, with additional challenges given the height changes in the mountainous city requiring additional rail and cable car options. Both cities additionally have Didi, an app I used quite a lot on my visit.
Didi gives you access to all forms of taxi transport, from actual taxis to people taking part in ride-sharing within the gig economy. I tried and tested a wide range of these, from taxis, “luxe” six seaters, regular ride-shares and the infamous “yellow Ferraris” of Chongqing.
My experience was incredible. From Beijing airport to my hotel was about 50 minutes, costing my little over €14. The return trip, with a little more experience and during lighter traffic was 30 minutes it a more premium 6-seater costing just about €20.
Shorter hops throughout the trip ranging from 10 to 20 minutes could cost as little as €3 to €8.
Now, I know that this is one of the biggest examples of comparing apples and oranges, but it opened my eyes to a capital city working through transport issues by allowing all means necessary.
Didi still polices their driver pool, polling for poor behaviour and remaining open for feedback from your trip, ready to take action when needed. True competition in the market is good for consumers when implemented correctly.
I will concede that not all of Ireland needs this solution. Shortly after returning from China, I was in Westport where only a handful of taxi operators are working, basically ferrying people from the locality and hotels to a handful of pubs and appointments. The hotel I was in sorted connections, even loading in people together out of convenience. It wasn’t expensive and it worked well even during busy hours. However, this was the only option as no apps like FreeNow even worked in the area.
However, for those in the bigger cities, for the foreseeable future, passengers are set to remain in the back seat of an expensive taxi, feeling guilty about paying with a card tap and that’s if they were lucky enough to get a taxi at all.
