Taxis vs. Uber Wars: New NCPA Report
The increasing popularity of ride services, such as Uber, Lyft, Wingz and Taxify, creates a win for consumers because the competition with taxi services creates competition and better services.
However, a new study from the National Center for Policy Analysis finds that the territory and regulation conflicts between some taxi companies and various ride-hailing services is misguided because of the differences between the two types of services:
- Uber drivers are generally better educated, younger and earn higher average wages than taxi drivers.
- Uber passengers are generally middle-income and younger compared to taxi passengers. Seventy percent of them are 16 to 34 years of age.
- Uber also caters to areas that are underserved by taxis.
“There’s no reason that there should be a war between taxis and Uber, since they each currently tend to serve different clientele,” says NCPA Senior Fellow Pamela Villarreal. “However, if taxis want to compete for Uber’s customers, they will have to innovate in both price and technology.”
The report also notes scenarios where both traditional public transportation agencies and Uber-type services could benefit by cooperating and tailoring their service options to specialized markets, such as limited mobility passengers.
The report, Taxis versus Uber: The Regulations, the People, the Money and the Future, was authored by NCPA Research Associate David Sobczak and managed by Villarreal.