Published on April 13th, 2016 | by Daniel Sherman Fernandez0
Uber Or Taxi? Which do I prefer? Consider The Facts Here First!
The big controversy today is how Uber has given Malaysian taxi drivers a driving constant headache. Headache in the form of pricing and the way urban Malaysians have been drawn to Uber services and have been quick to ditch taxi services for reasons that include,
- Service standards
- Prompt arrivals and
- Just being new and different
Well, the biggest issue would be pricing and it is clear with any route picked that you do save money on every route and then you wonder how Uber drivers manage to earn a decent profit when year in year out taxi drivers have been complaining about low incomes and hard times. Well, there are a small fraction of ‘bad hats’ in the taxi business that give the hard working honest taxi drivers a bad name in most occasions.
Well we did some research and here are the facts and reasons why Uber drivers are doing better.
- Taxi drivers need to buy Proton cars only……running and maintenance costs is not the best
- Taxi drivers need to rent their fare meter which is RM2.00 a day or outright purchase of RM800.00 a year. (and the following year you need to buy a new one…like it or not)
- Taxi drivers need to paint their car. The cost to paint the car red and white will be RM1,800 – RM1,500.
- Taxi drivers need to insurance their car and 4 passengers and costs start from RM4,800.00 and works its way lower each year with NCB.
- Taxi drivers need to install a NGV tank. Price to install and ready the taxi for NGV will be RM4,500.
- Taxi drivers need to take their car for inspection every 6 months and the cost is between RM25.00 to RM40.00 each visit and the taxi needs to be in very good running condition to pass and get back in business.
- Taxi drivers pay a yearly road tax fee of just RM2.00 which seems to be the only plus point in this whole exercise.
(please note that figures provided above are estimates)
Uber drivers on the other hand.
- Can use any sedan, hatchback, MPV, vehicle that they have currently. Fare pricing is based on the vehicle type and size.
- Uber drivers do not need to go for half yearly inspections and so conditions of vehicles is up to individual owners.
- Uber drivers do not need to paint their vehicles.
- Uber drivers have standard vehicle insurance.
- Uber drivers need not use NGV.
- Uber drivers don’t have a fare meter, so no daily rental fee.
- Uber drivers have a full time job most of the time and this is a part-time or occasional job.
In the long run……both Uber and taxi drivers can survive side by side only if taxi drivers start having pride in their cars and job. Look at taxi drivers in Japan, Korea and Singapore for example. They pride in their appearance daily where they dress well and have clean tidy taxi cabs.
The choice is always in the individual. I know plenty of taxi drivers personally and I continue to use them as they do a good honest job daily. I will not and have not subscribed to Uber and will continue to support taxi drivers who take pride in their taxi cab and their job. After all, Uber drivers do it for additional income and they have full time jobs to pay their bills. Taxi drivers have only their taxi driving income to pay their mortgage, educate their children and live day to day in rising living standards.