Further to the above (and believe me, I am no apologist for taxis, just like to be informed): Clear reasons for Uber being cheaper:
registration - commercial rego is often vastly more expensive for taxis: around $6,000 pa (Qld). Uber cost: family sedan rego of about $700;
insurance - comprehensive commercial vehicle cost is $7,000+ pa. Uber cost: $500 to $1000 for the family sedan;
radio fees - taxi owners pay over $1,000 per month to a dispatch company. Uber cost: $50 - $150 monthly mobile plan;
inspections - taxis, like all commercial vehicles, are checked every 6 months by the Department of Transport. Uber cost: nil;
licence cost - taxi drivers have to pay extra over their standard licence to obtain an Industry Licence;
taxi drivers, usually have to pay for their training and new elements of training (eg CPR) are ongoing. Uber cosy: nil;
cost of taxi plates - currently over $500,000 in Brisbane. Servicing this cost (by leasing them or borrowing from a financial institution to buy them) is a major cost for owners. Uber cost: nil;
replacement vehicle - taxis cannot be on the road 6 years after their date of manufacture. The family car?
Taxis are obliged to service sectors of the community not touched by Uber (eg, wheel chair transport, aged-based taxi coupons, etc) which takes additional time over a "healthy" customer. Uber is only now starting to address disabled access, so will be interesting to see how it goes.
These excuses are, of course, meaningless to those that just want a cheap fare. The taxi industry/Govt really should address their costs.
CAB Price at posting:
$3.31 Sentiment: Hold Disclosure: Held
