Meter running out?

There is a radical transformation of the public transportation sector happening right now, and the ones most affected by it, the taxicab companies, are hardly aware of their impending doom.

I'm a sudden convert of Uber, that instant car service company that's now available in the streets of Hong Kong, Singapore, and yes, even Manila. Provided one is in an area of high vehicle density, looking for transportation is made infinitely easier, with just a few quick swipes on the smartphone. All one has to remember is to have enough batt power in one's phone, so the car actually gets to the desired pick up location before the signal gets lost and panic takes over.

I get polite drivers who check if I like the radio station, if the volume is too loud, or whether I want no music at all. There are those who inquire about the temp of the aircon. I've gotten cars with hand sanitizers ready for my use. There are even those who offer candies (but those, I'm still wary about. I don't want to wake up with no kidneys in some bathtub full of ice).

Well, that's an unlikely scenario, as Uber gives you the driver's picture, the make and model of the car, and his phone number. So there are some security features there not available with regular cabs. You could even end up with a new textmate if your driver was pleasing enough to the eye. One friend took a picture of her driver, allegedly for Facebook purposes. (I'm sure.)

Oh Uber. Where were you during those embarrassing situations when I was my dashing best in a spiffy suit, and then had to cab it in a creaky old taxi that smelled of its previous occupants, before alighting in front of supercilious valets that had only just touched Jags and BMs. Social death.

Now, all the rage is Uber and another alternative I have yet to try, Grabcar. One colleague from Cebu , a financial analyst, has sold his two cars after running the numbers. The theory is, after factoring in the purchase price of his cars, then adding in all the costs like gas, maintenance, insurance, and all those little expenses that suddenly make your car a huge black hole, it was so much cheaper to just take Uber all the time.

Apparently, this is the new business plan for office workers who use drivers to bring them to and fro work. They have hit upon a plan to make their driver more productive. Enroll the car in Uber! Instead of the driver just lazing around the whole time in the office waiting for his boss to finish, the driver is sent out to the streets of Manila to earn some extra moolah. Smart right?

Another colleague, who is getting a new car, is pondering on whether to enroll in Uber so that on the drive home, all she has to do is switch on Uber, and she can live the fantasy of being a part time chauffeur. Well, actually, so she can pick up a passenger taking the same way home, and then earn gas money and meet new friends. Something like car pooling but with strangers.

Uber is a game changer, and the creaky old taxi companies are facing sudden death. Out of the Uber cars I've ridden in the past month, ninety percent seem newly purchased cars. So my theory is, someone else is doing the numbers and realized that even with the iPad investment, it's much more efficient to run a cab business with Uber than to go through the licensing route of the LTFRB.

No need to worry about cabs being held up by desperate robbers for cash, only the IPad is stealable. And really, would robbers go and register their credit cards before rushing in to steal an iPad? No need to worry about daily cash reconciliations, Uber will keep track of billings, payments, and settlement. It's a win from the car owner's perspective.

That's the same from the point of view of customers, who are happy with getting to avoid haggling with surly cab drivers on exorbitant fares, or being taken for a ride on strange routes when the driver smells that the passenger is out of town. Passengers don't have to wait and desperately flag a cab and compete with other passengers, they can just wait serenely until their car shows up. And no need for cash - the ride is charged to the credit card.

I wonder if Cebu will take to Uber the way Manila has. It should be easier for this app to take off, considering how dense Cebu is. But there is less dissatisfaction with cabs in Cebu than in Manila, as Cebuano drivers are (in general) more garrulous and accommodating, known to give change down to the last peso. It will therefore be interesting to see whether regional differences will impact on the business model of Uber, although it has managed to thrive in dozens of countries and cities already.

Meanwhile, Cebu cab companies should beware, and prepare. Their time may have come.