Uber’s sudden arrival in London has shifted the technological gears in a tightly controlled taxi industry, throwing down a gauntlet to city hall regulators and an estimated 1,000 traditional cab drivers. Azzura Lalani examines how drivers and passengers are faring.

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The drivers

Uber-big, Uber-shy

Uber has tens of thousands of drivers worldwide, but trying to get one to go on the record, talking about their job, is no easy feat in London.

Maybe that’s because Uber has just begun here, a novelty still with the new-car smell. Or because drivers are aware the traditional cab industry is jittery, even angry, about their arrival.

It also could be that drivers are aware what they’re doing could run them afoul of London’s taxi bylaw, with heavy fines.

Many also have friends who are traditional cab drivers, and that’s an equally powerful deterrent.

“Ask me anything, I have no secrets,” said one Uber driver, “but I don’t want to be in the paper.”

So, who are these elusive, camera-shy Uber drivers? The Free Press developed a kind of composite profile of them, talking to five driving in London.

Some are unemployed or underemployed with a car sitting idle. They see Uber as an opportunity to get out of the house and make some easy cash. Others have full-time jobs but are looking to pick a little extra income on the side.

They have a car that’s less than 10 years old with four doors. They have a valid driver’s licence, proof of Canadian work status, vehicle insurance and they’ve had a background check by a company of Uber’s choice.

But they’re also interested in meeting new people and sharing a ride with them, even if it’s only for 10 minutes.

They don’t have special commercial insurance for their work, but they do get $2 million in liability insurance from Uber from the moment they accept a ride to the moment they drop off the passenger at their destination.

And since July 23, they’ve been driving for pay on London’s streets.

Some have worked in the traditional taxi industry and know the roads like the back of their hands. Others rely on GPS on their smartphones as they adjust to the new demands of their job.

They love the flexibility. They like not having a boss. They like going ‘online’ when they feel like working, and ‘offline’ when they don’t.

Some put in a couple hours in the morning before work, then a couple in the afternoon and evening when they’ve finished their regular job.

Mostly male, their clientele is largely a younger crowd familiar with apps — on which passengers hail and pay for Uber rides — who use their smartphones for everything.

Many drivers say they don’t yet have a good fix on how many hours they’ll work a week, how much money they’ll make or how much their expenses will run.

It’s too early to know, they say. But some of them can guess.

One driver said on average he makes about $16 an hour after he subtracts for gas, maintenance and vehicle depreciation.

“You can earn way above minimum wage,” he added.

Business has been “OK,” he said, but drivers believe now that Uber’s free trial period has passed — early passengers in London could take four free rides worth less than $20 — business will slow down, at least until the city’s 50,000 post-secondary students return to school in September.

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The drivers

Nema Abbasey: Long-hours cabbie

An average work week for Nema Abbasey is 70 hours — almost double the standard work week for most Canadians.

But in the taxi industry, in a city with four traditional cab companies chasing the business, that’s not out of the ordinary.

“That’s OK — it pays the bills, we don’t complain,” said the 45-year-old married father of four who moved to London from Whitby in 1997.

At first, he managed a gas station-convenience store. When the company went under, Abbasey started driving a limo and five years ago he got into the taxi industry.

“I like the flexibility,” he said, but added, “I couldn’t find anything else, let’s put it that way.”

Under London’s taxi bylaw, vehicles put into service as cabs for the first time can be no older than three years. Once they’re six years old, they have to be taken off the road. It doesn’t matter if they’re in great shape. That’s to protect the safety of passengers.

Abbasey recently invested in a new Toyota Prius, a hybrid car that saves on fuel.

The all-in cash price of a new Prius starts at about $30,000, according to Toyota’s website.

“It’s hard to find a two- to three-year-old car,” he said. “You have no choice but to buy an almost brand new car.”

The Yellow London Taxi driver doesn’t own his own plate, so he rents one from a family that owns it. When it’s time for his shift, he swaps out the plates on his car for the special licence plate that’s only for taxis.

Then he drives — if he’s lucky and there are customers.

His commercial insurance is more than $8,200 a year. He needs at least $2 million in liability coverage to drive a taxi.

His car is subject to three inspections a year to make sure it’s safe and in good condition. He also maintains it each month and does routine things like cleaning it and changing the oil.

He said he believes it’s unfair that an Uber driver can essentially do the same job he does but without all the overhead he must bear.

The rules, he said, should either be the same for everyone or there should be no rules at all.

“We pay a lot to be safe,” he said of traditional taxis.

But don’t get Abbasey wrong: He said the safety provisions the industry works under are worth it. And he’s proud he works for a local company.

“I believe in local, I support local people,” he said.



Nema Abbasey, a Yellow London Taxi driver, says he likes the flexibility of driving cab and “I couldn’t find anything else, let’s put it that way.” (MORRIS LAMONT, The London Free Press)

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The drivers

Carrie Baker: Working mom, cabbie

For 50 hours a week, Carrie Baker, a married mother with four kids, drives a cab for a living.

The 43-year-old has been in the business for six years along with her husband, who’s been driving for eight years.

They work for Blue & White Taxis and, together, they own their own car and their own taxi plate.

Her husband works nights while she works days. That way, their kids, ages five to 11, are always well cared for by a parent.

“The taxi gave me a lot of opportunity to be off if I had to be off,” Baker said of her decision to stop working as a supervisor for a school program.

“I like to be able to be with my family; the freedom and the income (of driving a cab) is decent.”

A self-described “people person,” Baker said she enjoys working with the public, but that a downside to the job can sometimes be the clients.

“Something that I don’t like is how people treat you because you’re a taxi driver.”

It’s hard for her to say exactly how much a taxi driver can make, she said, because many variables differ wildly in cost.

“Sometimes you work all day and you make less than minimum (wage), and other days you can work and make $20 an hour,” she said.

Some days she’ll sit for hours waiting for customers. Luck is also a factor in the business.

“Sometimes I’m working all week and I wonder if it’s even worth it.”

Uber’s entry into London worries her a bit, but she said she’s more worried about the safety of the public.

“I think they’re absolutely unsafe. (Uber drivers) don’t have to have police checks like we do, they don’t have proper insurance, so that’s what I’m worried about.”

Uber says its drivers are screened by a company of its choice.

If the ride-sharing giant takes away her business, Baker said, she doesn’t know what she’ll do for work.



Blue & White Taxis driver Carrie Baker says she enjoys working with the public, but a downside to the job can be the clients. (MORRIS LAMONT, The London Free Press)

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TEST DRIVE: Uber vs. regular cabs

The Free Press has been testing Uber’s early service and prices against traditional taxis. A sampling of our early findings:

Thursday, July 23, Uber launch day in London

Cab

To and from: The Free Press to Western University.

Time ordered: 1:32 p.m.

Time arrived: 1:36 p.m.

Driving time to destination: 11 minutes

Trip time: 16 minutes

Cost: $15.25 + 2.25 tip = $18

Credit card: Yes

Service: Cabbie friendly and knew roads well.

Uber

To and from: Western University to The Free Press.

Time ordered: 2:25 p.m., but the computer app kept saying no cars available. It took 15 minutes for a driver to accept. When he did, the app showed his name and photo, the car and its licence plate, how other users had rated him, where he was and how long he’d take to get to arrive (four minutes).

Time arrived: Driver would have been on time but missed the street and had to turn around and come back. Arrived at 2:46 p.m.

Driving time to destination: 20 minutes

Trip time: 31 minutes

Cost: $15.36, including the tip that’s part of the charge.

Credit card: Yes

Service: Car was spotless and air-conditioned, with the driver even offering bottled water.

Saturday, July 25, a busy bar night

Cab

No Uber cars available 9:45 p.m. to 10 p.m.; called traditional cab instead.

To and from: The Free Press to Barney’s on Richmond Row.

Time ordered: 10:05 p.m.

Time arrived: 10:08 p.m.

Driving time to destination: Five minutes

Cost: $7.50 + $2 tip = $9.50

Service: Driver friendly; said he splits his time between Nairobi, Kenya, and London, Ont. He works as a cabbie to help pay for his kids’ post-secondary education. Car was clean and driver knew where to go.

Uber

To and from: Barney’s to Free Press.

Counted 16 cabs that could have been taken as refreshed Uber smartphone app.

No Uber cars available 10:16 to 10:30 p.m.

10:30 p.m., car available; a Dodge Nitro, driven by Lee. Expected in about six minutes.

iPhone dies, fall out of touch with Lee.

Uber charged $5 cancellation fee.

Wednesday, July 29, morning rush hour

Uber

To and from: Oakridge area to The Free Press.

Time ordered: 8:18 a.m.

Was told a car was six minutes away, but app froze and didn’t realize driver was outside and had been waiting a minute or so.

Time arrived: 8:25 a.m.

Driving time to destination: 20 minutes

Cost: $19.87

Service: Sleek Mazda SUV; driver friendly; he offered an ice-cold bottle of water.

Cab

To and from: The Free Press to Oakridge.

Time ordered: 8:52 a.m.

Time arrived: 8:55 a.m.

Driving time to destination: 19 minutes

Cost: 25.25 + $1 fee for using a debit card + 10 per cent tip = $28.78.

Service: Driver friendly, said he enjoys the flexibility driving gives him to care for his kids.

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UBER 101

Riders use computer app to hail and pay for rides.

U.S.-based, in more than 300 markets worldwide.

Expanded its UberX low-cost, ride-sharing service to London, Hamilton, Kitchener-Waterloo and Guelph last week.

Now in nine Canadian markets; has faced bylaw and legal blowback in key cities.

Toronto tried but failed to get court injunction to stop Uber.

Has put traditional cab industry under siege in many markets.

BROKERS 101 (cab companies)

Provide dispatching service for taxi drivers for a fee.

Install a computer and camera in taxis for which they’re resposible.

Some own taxi licence plates they lease out to drivers; others own no plates.

Four traditional cab brokerages in London.

Two offer app service, just like Uber; two others developing it.

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HOW THEY FARE



Uber fares vs. price-regulated cabs

Uber

Base fare: $3

Distance: $1.10 a kilometre

Time: $0.25 a minute

Safety fee: $1.50

Surge pricing: Higher prices kick in at peak times, encouraging more drivers to jump in to meet demand.

Cab

(Prices adjusted to match Uber’s in distance and time, for easier comparison)

Base fare: $3.50

Passenger is charged for either the distance travelled or the time in the car, depending on whether there is traffic or not.

When there’s traffic, or cab is driving 17 km/h or less, passenger is charged for time.

When faster than 17 km/h, charge is for distance.

Distance: $1.92/km

Time: $0.58 a minute

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TYPICAL CAB OVERHEAD COSTS

Dispatch fee: $150 a week

Commercial insurance: $7,500 to $8,000 a year with a clean driving record. Higher, if black marks on a driver’s record. Extra for some cars, for example another $2,000 for a luxury vehicle.

Maintenance: $300 a month, includes tires, oil changes etc.

General maintenance: $200 a month, includes car washes.

Police/driver background checks: $40 to $75 a year.

Business licence and plate licence renewal(for plate owners only): $750 a year.

Taxi licence renewal: $140 every two years.

Car safety certification: $50 a year.

Car: $15,000 to $18,000, minimum to buy a used police car, a popular option for many drivers.

Becoming more common for taxi drivers to buy fuel-hybrid, which cost about $30,000 to $35,000. Taxis can be no older than six years, and one going onto the road for the first time can’t be older than three years.

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THE CITY HALL CONNECTION

Tightly regulates the traditional industry, backed by a bylaw, for safety and what drivers can charge.

Controls the number of taxi plates in circulation, tied to population.

Older plates are transferrable and sell on the open market; have sold for more than $100,000.

Newer plates are non-transferrable; expire when owner gives them up.

Bylaw as written essentially bans Uber from operating in London.

Politicians have asked city staff to report back on new technologies and approaches to “vehicles for hire.”

Report could go to politicians as soon as August.

Council must decide whether to fight Uber or change its bylaws to regulate ride-sharing.

At least two councillors, Jesse Helmer and Jared Zaifman, have expressed willingness to change regulations to make Uber work here.

With files by Kate Dubinski and Patrick Maloney