HAIL THE REVOLUTION

How on-demand taxi apps are changing the way we get around

One of my favourite Uber drivers was Bernhard in Miami, a part-time actor. “I do the voiceover for the McDonald’s adverts in the South American market,” he told me, launching into sped-up Spanish before singing the jingle at the end.

In Munich, Gerald supplied me with free mineral water and wifi, and then there was Bradley in New York, who, within minutes of me getting into his Toyota Camry, started telling me about the book he was working on: Disclaim and Disclose, an account of his high-profile fall from grace as a commodities trader.

First launched in San Francisco in 2010, on-demand taxi app Uber now operates in more than 400 cities globally. I have been using it since the London launch in 2012. I remember it feeling extravagant, with drivers often providing chocolate, gum, iPads and phone chargers, and yet it was cheaper than regular black taxis.

It was no surprise, then, when the Department for Transport announced last year that the number of private hire vehicles on the capital’s roads had risen by more than a quarter since 2013 – from 49,854 to 62,754. The number of black cabs, meanwhile, has remained steady, at around 22,000 since 2005.

Uber expects the number of London drivers it works with to surge from 15,000 in 2015 to 42,000 by the end of the year. Worldwide, there are more than five million Uber trips per day.

Its rapid rise has been controversial, though, with competing taxi drivers up in arms. There have been violent demonstrations in Paris and Jakarta, marches in Rome and Sao Paulo, protests in Melbourne and Brussels, and strikes in London that saw Hackney Carriages clog the roads in a river of black.

Despite numerous ongoing court cases from drivers, taxi companies and governments in which existing legislation has

been challenged (as a “logistical intermediary” the firm doesn’t own cars and drivers are contractors rather than employees), the company was most recently valued at US$62.5 billion. It’s no wonder, then, that other companies have been following its lead – in China, Uber rival Didi Kuaidi just raised US$1 billion in funding, based on a US$20 billion valuation.

Even the drivers of conventional taxis have been banding together to release apps. Hailo was founded by three London cabbies and three internet entrepreneurs in 2011. UK general manager Andy Jones says: “We challenge any other application to match the quantity and quality of supply we have available in London, with over 16,500 registered cabs in our fleet.”

Does this mean the end of flagging taxis on the street? Jones says: “The typical wait time for a Hailo cab is just three minutes in London, and that gives you certainty that a taxi is coming and knows where to find you, even if you don’t know where you are. But seeing the yellow light on in the street is part of the city’s landscape. Our technology is rapidly evolving but we think customers will continue to want both options.”

How it works

Most of us have entered the age of the “e-hail” but if you still haven’t tried it, here’s how it works. After downloading an app (see overleaf for ten of the best) and inputting your card details, you use geolocation to pinpoint where you are and find out the estimated wait time. Once your car is booked, you will see a photo of your driver, their name, ranking and licence plate number – you also have the option of messaging or calling them. When your journey is complete, you leave a rating.

In general, transactions are cashless (in some countries, such as India, you can pay in cash, as the foreign transaction fee can be more than the fare). You will then be emailed a receipt with a map showing the way you went. If you have any problems – maybe your driver didn’t turn up or took an overly long route – you can lodge a complaint with Uber (and others) and the company will quickly respond with a refund or discount on your next ride.

Safety remains a hot topic. Uber conducts background checks on its drivers, and rides are insured. Remo Gerber, taxi app Gett’s chief executive for the UK and Western Europe, says: “We have a lot of corporate clients and what matters to them is that their duty of care continues when their employees are using our services. This is why we are working only with licensed taxi drivers that are properly vetted and trained by the councils.”

In reality, whatever kind of taxi you get into there is a small risk that you will be exposed to unsavoury people – but this kind

of technology provides added layers of security and built-in abilities for recourse.

With Uber, you can send someone your journey status so they can see your route, ETA and driver; the drivers’ contact details are stored in your account; and you don’t have to hang around on the street to find a taxi – you can order it from your office or restaurant. In India, there is also an SOS button that sends a message to the police.

At the same time, the tech is helping to keep drivers safe, too. In East London, Ali told me that when he was working as a minicab driver, he was held hostage at knifepoint, beaten and robbed. He said he felt safer with Uber because he knew who he was picking up and if anything happened he could go to the authorities with their details. Not carrying cash also eliminated the incentive for people to steal from him.

Good for business

For corporate travellers, apps such as Uber, Gett, Hailo and Addison Lee offer the added benefit of being able to create accounts linked to a corporate credit card, and filing expenses is made easier thanks to virtual billing.

Jones says: “The Hailo app is used by over 90 per cent of FTSE 100 companies. Those with a Hailo for Business account also benefit from features such as online booking, expense and travel policy management. Information such as flight numbers can be added, making it easier for passengers and drivers to manage the complications and delays that are often linked to air travel. You can also collect Avios with every qualifying journey through partnerships with British Airways Executive Club and Iberia Plus.”

Some are differentiating themselves from Uber’s ondemand model by providing the ability to forward-plan, or by adding extra services. Justin Peters, chief executive of Kabbee, says: “Unlike Uber, advance booking allows business travellers to book a journey up to three months ahead and a fixed fare guarantees the price, even in London traffic.”

Gett’s Gerber adds: “We have just launched a courier service through the app – and if you are in the right zone in London we will deliver you an icecold bottle of Veuve Clicquot and two glasses in ten minutes for £39.” I’ll drink to that.