Are Taxi Cabs feeling threatened by other transportation competitors?


Taxi Cabs are facing trouble with other transportation agencies because of them special services, better rates and other benefits.

This isn't only a local news, it's actually happening in many US cities and even around the world, and it's also making all taxi cab drivers a headache since a couple years.

The reality is that here in Los Angeles (as in other cities), taxi drivers are facing a trouble and a hard competition for new customers nowadays. One more time, technology defies real life while reservation platforms airport transportation or apps like famous Uber for moving around are offering easy bookings, private services, and cheaper rates. That is definitely taking a huge advantage over trying to find a taxi cab at the street.

John Miller, a local taxi driver since 30 years says: "It has been tough days since competition appears, you know, Uber, Lyft, Shuttles... we're trying to fight against technology and what tourists and customers think. Old-fashioned and expensive services, they say, and yes, their smartphone solves almost everything but it stills not being the same".

It seems like time and money saving is all what customers want, but there are other facts aspects safety that private transportation services offer like the drivers information, pre -established routes, type of vehicle and its plates.

This same example occurs in Los Angeles, where the statics of the number of average trips and farebox on taxi cabs per day are getting lower because of the competition increases. Of course, there have been many complaints and demonstrations from taxi industries.

It is worthy to consult the average or estimated cost of the private transportation services and taxi cabs here in LA before taking a decision. We also need to analyze how the transportation costs (like gasoline, insurance and wear and tear) are nowadays.

The current cost of driving a vehicle is:

  • 20 Cents per mile for depreciation for the vehicle (assuming an average Toyota depreciates 2,500 bucks a year – been driven 12,000 miles).
  • 16 Cents per mile for gasoline.
  • 05 Dollars per mile on average for insurance
  • 05 wear and tear (tires, oil change, etc.)
  • Total: 0.46 dollars per mile.

As an example, currently going from downtown LA to LAX airport costs:

Self-Driving Car (gas powered): $8.14

Shuttle to lax : $30-50

UberX: $25-40

LA Taxi: $72.77

There are many facts about transportation, technology, and jobs that have been changing especially in the last years. New competitors, offers, and institutions that are trying to get into the market with new proposals and sustainable projects. Taxi cabs are still in the game and we need to know that clients are first and bringing excellent services are each agency responsibilities.