Montreal Gazette

Thanks, Uber, for the wakeup call you gave us

Company’s disruption­s, both good and bad, have given consumers a wake-up call

- MARC RICHARDSON marc.richardson@mail.mcgill.ca

Dear Uber: I hate you.

No, actually, I love you. Or maybe I love to hate you and hate that I love you.

We’ve told each other it’s over before. But at 2 a.m. my finger always drifts to you on my phone screen. When I just want to get home after a long day and it’s pouring rain, yours is the name I think of first.

You’re not perfect — far from it. From your company’s combative position vis-à-vis various government­s and regulatory boards to questionab­le driver vetting practices and an apparently toxic corporate culture, you’ve got some work to do.

But that being said, we — yes, a collective we — owe you a thankyou. Uber’s rise to prominence, and the pressure it placed on the taxi industry, has forced us to take a hard look at the taxi industry and the future of the so-called “sharing economy.”

Last fall, the provincial government listened to taxi drivers and acknowledg­ed that the price of a taxi licence was far too high for what it was actually worth. Then it announced $44 million over five years to help modernize the taxi industry — a sum funded in part by fees and taxes paid by Uber to the provincial government. Last week, the government included funding in the 20182019 budget to give financial assistance to taxi permit owners.

It raises an important debate about whether government should intervene in levelling the playing field among competitor­s. Practicall­y, though, it augurs well for consumers, with companies now encouraged more than ever to improve the service they offer.

In February, Economy Minister Dominique Anglade announced the Quebec government would be studying how the sharing economy and traditiona­l economy could coexist.

Uber isn’t alone in challengin­g long-establishe­d but archaic industries. There is bound to be pushback and controvers­y along the way.

But the competitio­n created by the introducti­on of a new player in the marketplac­e can only benefit consumers — that’s us, by the way.

Competitio­n isn’t exclusive to price; it also includes competitio­n in terms of services offered, quality of service and the implementa­tion of new technologi­es that make the experience easier and more enjoyable for customers.

Companies like Uber, Airbnb and Canadian wealth-management fund Wealthsimp­le have upped the ante for new companies to enter their respective markets. That’s a good thing. Look no further than Téo Taxi, truly one of Montreal’s crown jewels in terms of homegrown companies.

Téo adopted a similar smartphone-centric user experience and even poached a number of drivers from Uber as it expanded. But what sets it apart from the California-based competitor is that Téo fields an all-electric fleet of vehicles. New companies looking to bite into Uber’s smartphone-clutching market will have to push novel ideas, like Téo, that benefit individual customers and society as a whole.

Uber has even pushed STM chair Philippe Schnobb to think of a future where all of Montrealer­s’ transit needs are integrated in one seamless digital experience. Digitized ride-sharing and transporta­tion can only make our roads safer — and more enjoyable — for everybody. The potential to reduce drunk driving alone should entice the government to push for digitized hailing and payment among taxi and public transit companies.

All of that to say: thanks, Uber. You’re not perfect, but you’ve given us a wake-up call. With the traditiona­l economy being disrupted at a seemingly unparallel­ed rate, we’re likely to face more Ubers in more industries in the years to come.

You’ll always be our first, though.

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