Taxi industry CAN thrive by mixing the best selling points of shared mobility with their own unique professional standards
Shared mobility is changing how people travel, with ride-hailing apps, car clubs, and micro-mobility options competing for passengers. Traditional taxis are being asked to evolve or risk being left behind.
Shared mobility services have surged in popularity, particularly in urban areas where convenience often dictate travel choices. Companies like Uber and Bolt have shaped a section of younger generation customer expectations, offering app-based bookings, upfront pricing, and cashless payments. At the same time, car-sharing schemes and e-scooter rentals provide further alternatives to the traditional taxi.
Taxis, however, still play more than a vital role in the transport network. Licensed taxi drivers undergo rigorous training, ensuring passenger safety and reliable service. Purpose-built vehicles are designed for accessibility, offering services that shared mobility providers often cannot match. But to remain competitive, taxis have been made to adapt fast and become more efficient using some techniques that has made shared mobility popular.
Technology is key. Many taxi firms have introduced their own booking apps, allowing passengers to hail cabs with the same ease as private hire services. Contactless payments are now the norm in many cities, and some councils are supporting taxi operators with funding for digital upgrades on things like CCTV. Like any industry, cabbies must continue investing in their area of work to stay relevant.
Regulation is another area where the taxi industry faces both advantages and challenges. Taxis operate under strict licensing laws, ensuring safety and quality. In contrast, many shared mobility firms have faced scrutiny over their regulatory compliance. Recent legal battles over worker rights and licensing issues show that the regulatory gap between taxis and shared mobility firms is narrowing.
The cost of maintaining a purpose-built licensed taxi is high, with vehicle upgrades, fuel costs, and insurance premiums cutting into earnings. Competition from ride-hailing services has made it harder for some drivers to make a living. However, the growing demand for sustainable transport could work in taxis’ favour. Many local authorities are pushing for greener transport solutions, with incentives for drivers to switch to electric taxis. For some passengers cost isn’t the driving factor when deciding how to get from A-to-B. The vehicle they travel in, faster journeys, driver experience and Knowledge and comfort all play a part in decision making.
The taxi industry, with its established reputation for reliability, can not just compete, but also thrive, if they can take the best selling points of shared mobility and weave them into their their own unique professional standards.
