Is Uber good for passengers?

Now, I love a good incentive scheme. My favourite coffee shop ensures it stays my favourite by giving me my 10th coffee free, but I do wonder if I’m the only one who feels a tad guilty reaping rewards for recommending a service I love to friends. Uber for example gives me £10 credit for recommending a friend, and gives that friend £10 towards their first ride too.

Unfortunately there are changes afoot that might make me less likely to recommend Uber in the future.

Putting the brakes on Uber

TfL is proposing new regulations on the mini cab industry that, if implemented, would force people to wait five minutes for a vehicle, even if one was available sooner.

The proposals could also stop mini-cab companies from sharing information on mini-cab availability and waiting times either physically of via an app. This is a key feature of Uber and other apps which allow you to get a view of the availability and wait times of cabs ahead of booking.

Another of TfL’s proposals would require companies to specify fares before the journey. This could pave the way for fixed price tariffs, which would exclude cases where charges calculated by time and distance can be more efficient.

We haven’t yet seen evidence that the current system isn’t working, so we think there is little justification for these reforms to be taken forward.

And these proposals won’t just impact Uber, which has more than a million users in London. They will also affect any mini-cab company wanting to offer similar services.

Now, we support improvements to the quality, safety and standard of cab services, but we’re concerned that some of the proposals would damage competition by restricting private hire cab companies.

Let the public drive this forward

We’re concerned that TfL is giving too much consideration to what the industry wants, and not thinking about passengers. On TfL’s initial consultation only 5% of respondents were members of the public, while around 80% were from people connected to the mini cab or taxi industry.

So, we’re submitting a response to TfL’s consultation. We’re urging TfL to think about the unintended consequences of these reforms. Putting consumers in the driving seat, in any market, will help increase competition which will benefit people, business and growth in the economy.

We think passengers should be driving the London cab debate, so do let us know what you think about these proposals.

Useful links:

Which? response to the Private Hire Regulations Review consultation and proposals (PDF)