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thth Mar - 2 27 Apr 2018 27 Jan - 3rdndFeb 2014
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If there’s one thing Queenstown doesn’t need to add to its transportation woes, it’s a taxi war. But it looks like we’re about to have one. Sub-standard customer service and compromised customer safety accusations have started flying between established taxi operators and newcomers joining the ranks since a recent law change made it easier to become a ‘taxi service’. Now, Uber New Zealand have announced it will be expanding its services into Queenstown sometime in May. The San Francisco-based company enables users to hail and pay for rides via a smartphone app. It’s popular for being cheap and convenient and has been hailed as a ‘disruptive innovation’ by some users. Though it is a cleverly designed app, Uber’s business model and perceived lack of regard for local laws has seen it banned in cities around the world. Like all cheap products, there’s a catch – and it comes first at the expense of the local workforce and traditional Queenstown taxi companies who will soon have to compete with those willing to work longer, for less money. Uber charges drivers around 20% – 30% of each fare paid and drivers are classed as contractors, so have no employment rights or benefits. In New Zealand, some Uber drivers report earning as little as NZ$10 - $12 per hour (the minimum wage is $15.75). Many are lured by the idea of becoming their own boss and earning extra cash but soon find they must work longer hours to make money – something which has raised safety concerns in other countries. It’s an okay model for casual workers and students looking for a bit of extra income, or those willing to risk public safety by taking on a driving shift after a full day’s traditional employment. But is it a viable full-time, permanent role? Or is Queenstown about to welcome yet more short-term, poorly qualified and inexperienced drivers prepared to work for below minimum wage?
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However, we do need to recognise that the world is changing. As technology takes over more aspects of our lives, many speculate that it’s only a matter of time until all vehicles are autonomous. Until then, consumers are simply looking for the cheapest and easiest way to get around. That’s fair enough considering the high cost of traditional taxi fares in Queenstown.
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So, is there a middle ground? The tech-savvy city of Austin, Texas may have found it. The city temporarily ousted Uber during a legislation dispute and in its absence, a range of Uber-like apps popped up. These apps are locally owned and charge drivers a flat fee of just 99 cents per fare, providing both drivers and consumers a fairer choice. Some local taxi companies already have great apps and at least one Uber-style business model is well established in Queenstown. Perhaps they could up their tech game to beat the American giant at its own game – without undermining local drivers. There’s a burgeoning technology industry here in Queenstown and it may well have the answer to the Queenstown vs San Francisco taxi wars. Whatever happens next, Queenstown is in for an interesting ride and in the end, it’ll all come down to savvy consumer choices.
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