UBER AND OUT Luddites will lose this one too

Posted on 02/18/2016 | About Montreal, Quebec

Was it kindhearted concern for the welfare of their dwindling clientele that saw hundreds of Montreal taxi drivers blockading Dorval last week? They opted to obstruct roads into the arrivals area as opposed to the departure area where they’d have made people miss their flights? Unlikely, but let’s give them the benefit of the doubt.

Like it or not one thing is for sure: Like Airbnb, Uber is part of the new digital/app- enabled sharing economy in which we all now live. While there needs to be an orderly and safe transition from old ways to new, the regulations, safety and tax codes are going to have to be adjusted to accommodate these new-world e-businesses rather than to impede them. If the incumbents simply try to jam these new-technology-based enterprises into the old rules, then the latter-day Luddites can only lose this battle.In response to the illegally orchestrated Montreal traffic disruption, Quebec’s new Transport Minister Jacques Daoust stated he would form a parliamentary committee to examine the UberX situation – something that must be a tremendous relief to all concerned.  This probably presages a committee to review the committee’s findings.Meanwhile Uber in its various forms, continues to win over the hearts, minds and pockets of hundreds of millions of customers all around the world. Growing at a consistent 40 percent per quarter, the rideshare company’s first-half 2015 revenues of US $3.63 billion exceeded all of 2014’s  $2.93 billion.So, mes amis en Montréal, if you seriously believe that shutting down the airport for a few hours, or a government committee’s almost inevitably worthless findings are going to stop this gargantuan shift in your business model, maybe it’s time to think again. Perhaps a little bit of introspection is needed by the cab industry in general as to the kind of service it has been rendering over the last few decades. This could start with the following three simple questions:1.    Have we consistently delivered a fairly priced, reliable, clean, punctual and friendly product to our customers? 2.    Have we made any effort to move with the times and embrace the numerous opportunities technology offers to enhance our business? 3.    What can WE do to join in with the new world order rather than trying to shut it down?To the first question, anyone who has ridden in a typical cab in Montreal in recent years – myself included - will be quick to say that the answer has to be a resounding NO. Just Google ‘Montreal cab services’ and you’ll see what I mean. One of the first ones (name excluded to protect the guilty) to pop up features this customer review:“I had a very bad experience. I waited 30 minutes, didn't hear anything from the driver. Then I call again, the driver shows up 10 minutes later. We go to the airport. The fare is $23.55, but I only have two 20 dollar bills, so I give him 40. I asked for change. He says no change, and gives me his pocket change of 9.50. He doesn't take credit, only cash. I almost miss my flight. People, do not take this taxi service, ever.”Almost without exception the reviews are along these lines and the only glowing review I found was so utterly contradictory to those around it that one can only assume it was written by the cab company’s owners.  But this kind of dissatisfaction is by no means unique to Montreal. For instance the first review I randomly looked at in Vancouver read, “Worst ever cab company - waited over an hour and a half in the cold with a baby and the driver or company never apologized.” Toronto reviews all followed the same songsheet.Next time around I suspect Uber have these two as customers – if indeed Vancouver gets around to permitting Uber to operate there.  Last I read, for fear of driving outfits like the ‘worst cab company’ out of business, the city had put a moratorium on all new cab licenses thus keeping Uber out at the same time: That’s what government committees get you!The answer to question #2 is also a resounding NO. With very few exceptions small cab companies (as in the above tales of woe) haven’t even started to accept credit cards and GPS remains an anomaly. The final straw that drove me to Uber was being told by a local cab driver that he was 20 minutes late because he couldn’t find my house. When I asked why he didn’t use GPS he said, “Oh no, they don’t give us that” but then proceeded to yack with a friend on his iPhone for the entire ride.And question three, well here the answer is simple – either get with the programme or be rendered obsolete by it.But there is hope: Ontario Chamber of Commerce CEO Allan O’Dette put precisely what needs to be done into words last year when he said,  “Ontario can be ahead of other jurisdictions around the world if we act now to embrace the sharing economy by building adaptable regulations and tax frameworks to produce economic growth.”Bravo Mr. O’Dette. Maybe you should give Monsieur Daoust a call and ask how his committee is faring in its bid to play King Canute? You might also ask how he plans to protect his cab driving constituents from additional innovate car sharing outfits like Daimler-owned  ‘Car2Go’.  Maybe it’s better not to ask him about driverless cabs just yet – that might be too much for him to handle!