A Business War: Taxi Driver Vs. Uber

The business war between taxicab and Uber has been raging for a long time in Toronto. More and more, it seems like this business war is on a steady escalation ever since it was started from day one. In Toronto today, the taxi drivers are organizing a city wide massive protest, by purposely slowing down the traveling speed on all of the main arteries in order to demonstrate and vent their anger and frustration publicly.

In a free market economy, Uber is allowed to be operated in Toronto. Its presence is even embraced by Toronto mayor, John Tory, and welcomed by other city executives for the reason of whoever is offering the most competitive pricing and providing the best services will eventually win over and keep the customers.

Fair point! However, what continuously fuels the discontent between taxi drivers and their Uber counterparts is due to not only the lack of rules, specifically drafted to regulate Uber mode of business operation, but also the disproportionate amount of training that only the taxi driver has to go through and pass before being allowed to operate in city, while all there is needed for operation by a Uber driver is a vehicle.

Is slowing down city traffic and clogging up the main arteries the best solution for this raging problem? In the mind of protest organizers, the answer is yes; otherwise, they would not have rallied for and participated in such a demonstration. For those, who are not involved in the taxi industry and unable to hail a taxi on this day of protest, venting anger and frustration out this way may not be the ideal, win win scenario for taxi drivers, because, in doing so, they, unintentionally, give away customers and help their rivals increase business margins.

Is staging a public protest as such the best solution for this business war?

Published by Robbie's Blog

I am a third-culture person who's navigating his way around Hong Kong and beyond. Come join me on this rollercoaster ride.

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