The long-awaited Uber: what does it mean for Ukrainian taxi service?

Author : Andriy Korneyev

Source : 112 Ukraine

Less than 10% of Ukrainian taxi drivers give the cheques to their customers
14:38, 11 April 2016

Ukrainians put "unsatisfactory" mark to the Kyiv taxi drivers. Research of Active Group Company shows that 14.4% of respondents ranked quality of capital services as “1”, 16.3% - as “2”, and another 37.6% - as “3”. Only a few among the respondents, i.e. 5.9% of respondents have ranked quality of Kyiv taxi drivers as “5”.

The bad reviews about the capital services are not surprising: one in four consumers regularly encounter problems when using the services. Social networks are full of negative customer feedback about the situation when driver asked to pay more, refused to drive closer to home, was in conflict with the client due to the political views and so on. "Given the low estimate of Kyiv taxi, it is not surprising that only 22.3% of respondents do not face with problems while using the services of Kyiv taxi, and 36.2% of respondents rarely, but still faced with all sorts of discomfort in a taxi, " stated Active Group.

World network

Consumers are willing to use the new service on the taxi market. About 41% of respondents positively assessed the Uber taxi international service, and 25.5% are neutral to the program, according to the Active Group study. Only 3.9% of respondents belong to the beginner negatively.

Uber is a service for to quickly find a taxi, which is successfully operating for about five years in more than 400 cities around the world. To become a customer, a potential customer will need to download a special program on the smartphone and attach to the bank card account. Uber helps to quickly find the car as well as carry out mutual settlement between the driver and passenger. In addition, every taxi driver, and the client has a rating, which helps to minimize the number of conflict situations. A fierce competition leads to lower prices for services. Service on taxi request annually brings about $ 1 billion.

Representatives of Uber do not voice the exact date when the service to start working in Ukraine. We only know that Uber-Ukraine is headed by businessman Arkadiy Vershebenyuk. Kyiv would be the first Ukrainian city with the Uber service. Experts expect that this will happen within the next few weeks. "After Kyiv, Uber decided to run in Lviv. A team from European office soon to come to independently observe the situation. If National Bank does not hesitate, Kyiv to launch the project in early April, then in Lviv," Ilya Königstein, Lviv mayor adviser, wrote on his Facebook page. However, it is almost the middle of April, but the long-awaited start-up is not here yet.

Related: Uber responded to taxi drivers' protests in Kyiv

Since February this year the company Uberlin - authorized partner of Uber search taxi service - actively forms the basis for their drivers to connect to the service. Applications are accepted from the drivers to work in five Ukrainian cities such as Kyiv, Lviv, Odesa, Kharkiv and Dnipropetrovsk. To connect to the system of the service, employees must meet a number of criteria. The driver must have a Ukrainian passport, must be at least 21 years old, have a relatively new car (not older than 2008), and drive a car for at least three years.

To connect to the service, you need to provide your passport number, driving license, registration certificate for the car, the car photo and purchase insurance. There are several co packets: first, when the commission is 15%, and earnings come on the driver card every day, second, you must perform at least 40 orders, the commission is 11%, and payment is once a week.

Convenient service

What is special about Uber? For example, in some cities in Eastern Europe, where the service appeared in early November last year, all drivers were required to wear a light shirt and trousers, and all drivers were checked for the criminal record. The system is constantly arranges a variety of events, sends promotional offers various discounts to customers. For example, the first trip with Uber is free.

Ordering a car. With one click you need to open the application, another to indicating your location. Bargain with the driver is not necessary: ​​ the required amount is automatically deducted from the customer's bank card. What will be the cost of the trip? Not yet known. But, for example, in Minsk prices do not actually differ for normal taxi fare or business-class (Uber operates in the same sector).

Ukrainian taxi service do not welcome the arrival of a competitor. The head of the public organization "All-Ukrainian association of the taxi" Andriy Antoniuk said that they are willing to pay 10 thousand UAH to anyone who will provide official information on the service in Ukraine. The profile association wondered if the service has registered legal entity in the country and what kind of tax system is chosen. In late February, the local union even held a protest near the Kyiv administration. They demanded to document the information about filling of the budget and "a great foreign company." Unions fear that many taxi drivers who do not meet the requirements of Uber, will lose their jobs.

Related: Kyiv taxi drivers protest against Uber service

"We support the competition. We believe that it is beneficial to the consumer. Uber provides affordable, reliable and safe way to get around the city and becomes a complement to the local transport infrastructure. We have no problem to destroy the transportation market. On the contrary, Uber significantly expands the market, creating additional demand for travel," Uber said in an official statement. To find customers, many will be forced to dump. For example, it is already happening in London. Last fall, many drivers provided discounts of up to 30%, but only for a trip to a distance of over 10 km.

In Ukraine, the taxi market works differently. Dispatching services provide drivers with "consulting services", do not pay taxes and are not actually responsible for the safety of passengers. In the event of an emergency situation service specialist refuses to solve the problem and claims that the consumer does not use their services. According to estimates by Andriy Antonyuk, currently about 20 thousand work in Kyiv. The black market turnover is 3 billion UAH in Kyiv annually. Throughout the country, such services are provided by approximately 200 thousand man, and the amount of the illegal market is 30 billion UAH per year. Not more than 10% of the total number of drivers provide their customers with cheque for services.

Related: Taxi drivers protest continues in Paris

Related: Africans and Asians in a mass clash with Kharkiv taxi drivers

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