By Khaled Al-Amin
Photo Credit: Ahmed Saber
Lately, the name Uber has been widely circulated among the Egyptian community, what it is? how did it succeed in grabbing so much attention from different social classes here in Egypt? We will examine the case from all its angels, to present the fairest view by which our readers would then decide… is Uber a positive or negative phenomena?
Uber is an international privately owned company that provides services of Limousine transportation, it applies a smart phone application system that allows users to track their routes using smart phones’ GPS. In many areas around the world -especially Egypt, the safety factor causes many troubles for taxi users, many Egyptians complain from the unfixed prices normal white taxis charge. That was also a good advantage for privately owned companies -such as UBER- to shine in the Egyptian market.
The safety factor
“I completely trust Uber’s safety, I can order him to transport my children and the maid with no worries, you can track the driver’s path and communicate with him and his superiors if anything went out of planned,” Rania Fawzy, an Uber user said. It is quite obvious how a certain class of the community -mostly higher class, smart phone users- are now depending entirely on Uber’s services while turning their backs on local white taxis’ services. For Uber is much more comfortable and safe from their view, “You order a private car, this year’s model, right out your door, to drive you to whatever destiny you have chosen. In fact, many people now deals with UBER as their own private drivers. For tourists and foreigners living here… most of Uber’s drivers know English as second language, which shows how developed such service is.” added Omar Kamel, A daily Uber costumer.
On the other hand, many taxi drivers are being harmed, “there is no more long orders for us, costumers no more ask white taxis to take them far destinations, most of the orders we receive are short ones mostly around the block… the ones charged with 5 and seven pounds. But the 6th of October, Fifth settlement, Airport and such, are no longer available, and that’s due to this new privately owned Uber’s appearance.” Khaled Mahfouz, a white taxi driver -10 years in the job- expressed to MEO reporters.
Unfair comparison
Number of Cars: The competition is said to be unfair, for Uber has around 300-400 cars operating across Cairo only, while white taxis are estimated least at 90 thousand cars in the capital only. This supposedly gives a lead to normal taxi drivers, yet many of them protest against the unjust elements of competing. As most of them complain, “We are charged more costs by the government through taxes and licensing, our cars license cost much more than normal private cars, we are facing problems paying our debts. This has to be reconsidered by the government, allowing companies like Uber to operate in Egypt will cause a huge class of the Egyptian community to face economic crises.” a group of taxi drivers in Lebanon square taxi stop, cleared out in statements.
Operational costs: A taxi costs between EGP 150-200 thousand, a driver has to renew his driving license every 3 years- which costs him additional cash, and counters charge 1.50 pounds a kilo. The average monthly income a white taxi brings in was EGP 6000-7000, extracting gas and other car services, a normal taxi usually enters EGP 4000-5000 of net profit. But most taxi drivers do not abide by traffic law, they do not use counters for charging, they rather price the trip according to their ‘mood’ sort of speak. For instance, if the taxi driver is transporting a tourist, he might charge him double or triple what he usually charges -causing a lot of distrust among tourists with regards to taxi drivers.
On the other hand, Uber has fixed charging prices, it’s cars are owned by suppliers contracted with touristic companies, their cars are usually in high conditions, and drivers are trained for professional customer service and safe driving. A UAE private company called Kareem Car, works in collabouration with Uber. Salma Hegab, an AUC graduate and reporter in Ahram online, posted on her social media pages, that she once asked an Uber driver for tissue, unfortunately there wasn’t any…the driver insisted to make a stop and buy tissue, surprisingly, he came back into the car with tissue and a bar of chocolate -which he persisted not to charge her for. Ladies and gentlemen, this is customer satisfaction at its best!
Dilemma
Abdelwahed Rady, a taxi driver who inherited the job from his father, called for the government to relook into such unfair competition, and check whether companies are legal to compete in local markets as they are only licensed for tourism activities, and not compete with local taxis in streets.
Khaled Menawy, President of Egyptian tourism company chamber, said: “If Uber’s cars are this year’s model, have all their taxes paid, and the company is contracted with a tourism company… thus they are legal to operate in the market freely.”
Osama Nabil, a supplier to Kareem Car, said that all our paper work is clear, we are legal and we’d like local white Taxis to reorganise themselves and compete with us in providing the highest qualities of services and satisfaction to clients.
A Solution
Traffic authorities used to have wide monitoring regulations for white taxis, when they first came in as substitutes to the old black and white ones. Traffic officers used to stop occupied taxis to check whether they use their counters for charging or not, and in some cases investigate after asking the clients several questions, and if they found evidence of drivers not using their counters… they are fined a traffic violation note.
Uber is not illegal -they are licensed as a tourism entity- the fact that 400 cars cause this much trouble to the 90 thousand white taxi competitors, means that there is an unmistaken defect in the way white taxis operate. For example, many taxi drivers decide whether they’ll accept the clients request or not, if he did not like the destination, he would simply neglect the call and pass by clients on streets. While Uber on the opposite side, has an application -has to be signed in with a Visa account number, that does not refuse a request, wherever the destination is, and charge fix prices using either cash or Visa.
Taxi drivers must apply a system similar to Uber’s, this way honest competition would be set, one that proves Egyptians potential to compete with global standards. Many countries around the world have their taxi networks systemised, why don’t Egypt also apply so? Drivers will have added privileges like full Insurance, higher pensions and others. The government should think of applying such system, it would put order to the unmanaged taxi communities.
It is worth noting that taxi drivers present an important class in Egypt, and it would be dangerous to neglect such phenomenon, as it could amplify and become too fractured to fix, Uber is providing quality services, it must be admitted. It’s not a question to expel it from activating in Egypt’s markets mean while. We must rather look into systemising the huge network of Taxis we already posses, just adding order to such networks, would definitely provide higher quality and greater benefits to each: drivers, costumers and the government.
The French Experience:
France had stopped Uber from operating in its Markets because it already had a systemised network of taxis, which made France in no need to Uber’s services -it already provided such services through its networks. Here in Egypt, we have to primarily manage our system. Only then we could discuss expelling companies like Uber from operating in our markets.
