The taxi industry has served as a cornerstone of transportation models in many cities. However, shifts in the needs and expectations of both drivers and riders have necessitated change. Riders have grown to expect different standards of service, such as the ability to pre-book taxi rides, while drivers are seeking to diversify sources of income by offering their services across different platforms and multiple booking options. As a result, the taxi industry is ripe for change, signaling a need for current (and often legacy) models to evolve.
Ride-sharing apps offer advantages such as flexibility for drivers, ease of access for users, the convenience of finding a ride, and price transparency, among others. The advent of ride-sharing has compelled key players in the market, like regulators and taxi associations, to rethink their pricing models and adapt to customer expectations. Policymakers in some areas of the world have changed regulations to accommodate ride-sharing, while taxi regulations in other places have remained static. However, despite rapid change, the absence of a fact base to guide decisions by regulators and inform the general population has resulted in resistance among certain regulatory bodies.
This report seeks to analyze the impact of differentiated taxi pricing models on taxi drivers and riders, highlighting the limitations and opportunities that regulators can consider. The report unpacks the impacts of taxi pricing reforms in three key markets of interest (Japan, South Korea, and Taiwan). It combines policy analysis with rider and driver survey data in four case study cities (San Francisco, Singapore, Vienna, and Sydney) that have reformed taxi pricing policies in recent years and adopted differentiated taxi pricing, providing unique insights and takeaways for regulators seeking to implement taxi pricing changes.
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For translated versions of the report, please visit: Rethinking Taxi Pricing: Spurring Innovation and Choice in the Taxi Industry | by Harrison Peck | Uber Under the Hood | Medium