I was rushing to get to a real estate forum dinner last night and so instead of walking — which is normally what I would have done — I decided to grab an UberX. As some of you might be aware, I like UberX. It’s convenient to use. And the fares are cheaper than regular taxis. So why wouldn’t I use it?
But last night I got an extra treat. A guy named Mike picked me up in his Tesla Model S:
I snagged the @TeslaMotors Easter egg on @Uber_TOR :) #uberx pic.twitter.com/JFrN47hdB4
I was rushing to get to a real estate forum dinner last night and so instead of walking — which is normally what I would have done — I decided to grab an UberX. As some of you might be aware, I like UberX. It’s convenient to use. And the fares are cheaper than regular taxis. So why wouldn’t I use it?
But last night I got an extra treat. A guy named Mike picked me up in his Tesla Model S:
I snagged the @TeslaMotors Easter egg on @Uber_TOR :) #uberx pic.twitter.com/JFrN47hdB4
— Brandon G. Donnelly (@donnelly_b)
According to Mike there are two of these “Easter eggs“ in the UberX Toronto fleet, which I was also told is now up to hundreds of cars. So it’s not everyday that you’ll get picked up in a Tesla.
If you’ve never been in a Tesla, the first thing you’ll likely notice is the absolutely epic screen that sits in the dash. Most people’s laptops don’t have a screen this big. It’s gorgeous.
But there are a bunch of small details that also standout. For example, the door handles sit flush with the door until they’re needed. Here’s a video of how they work:
[youtube https://www.youtube.com/watch?v=UxavZ2QxuLY]
But the real question that is probably on your mind is: Why is some guy with a Tesla driving around Toronto offering rides via UberX? That was certainly one of the first questions I asked him after I got in the car.
And the answer is that he does it for fun.
He actually owns a medical clinic in Markham, but comes downtown on the evenings and weekends to drive around and meet new people. In fact, he called it the “best networking tool on the planet.” Because as soon as he picks people up in his Tesla, they immediately take him seriously and want to have a conversation. That has translated into business relationships and even invites to parties. As in, he drives a group to a party and they ask him to come in — which he said he often does.
If he really took it seriously and did it full-time, he figures he could make around $40,000 - 50,000 a year driving for UberX. And I believe that’s close to what a regular taxi driver would make. But again, that’s not why he’s doing it. Isn’t it interesting how things change?
UberX officially launched in Toronto today. Which means that Toronto’s taxi and limousine industry is about to get a lot more grouchy. For those of you who may not be familiar, uberX is Uber’s low-cost car service. Just like the regular version, you hail a car using your mobile phone. But this option will cost you 40% less than a regular taxi!
Here are sample rates from the Financial District to Yonge & Eglinton (midtown):
And from the Financial District to Pearson International Airport:
This is pretty exciting. Because as much as I think it’s great to use Hailo or Uber to hail and then pay for a car, the big problem in my mind has always been that cabs in Toronto are just far too expensive. The meter starts at $4.25 and shoots up faster than you can take a selfie in the backseat.
But obviously there’s an entrenched industry here that is not going to be happy about a startup eating into their fares. So I wouldn’t be surprised if we see a lot more backlash here in Toronto – as has been the case in many other cities. However I don’t think that’s a viable long term solution for the incumbents.
Uber is thought to be worth $18.2 billion right now. It’s probably not going to go away.
So instead of protesting and trying to ban it, we should be figuring out how to adjust to this changing reality. For the incumbents, this might mean lowering fares or figuring out a better way to differentiate themselves. A 40% discount is a pretty compelling value proposition. For me personally, I don’t know why I would ever pay more for a regular taxi, unless there was no other option.
On a side note, it’s worth pointing out that an uberX trip from downtown to Pearson is estimated to cost around $33 – roughly the same as what some people think the Union Pearson Express train will cost. That’s further evidence that charging a lot and targeting business travelers may not be the best strategy.
— Brandon G. Donnelly (@donnelly_b)
According to Mike there are two of these “Easter eggs“ in the UberX Toronto fleet, which I was also told is now up to hundreds of cars. So it’s not everyday that you’ll get picked up in a Tesla.
If you’ve never been in a Tesla, the first thing you’ll likely notice is the absolutely epic screen that sits in the dash. Most people’s laptops don’t have a screen this big. It’s gorgeous.
But there are a bunch of small details that also standout. For example, the door handles sit flush with the door until they’re needed. Here’s a video of how they work:
[youtube https://www.youtube.com/watch?v=UxavZ2QxuLY]
But the real question that is probably on your mind is: Why is some guy with a Tesla driving around Toronto offering rides via UberX? That was certainly one of the first questions I asked him after I got in the car.
And the answer is that he does it for fun.
He actually owns a medical clinic in Markham, but comes downtown on the evenings and weekends to drive around and meet new people. In fact, he called it the “best networking tool on the planet.” Because as soon as he picks people up in his Tesla, they immediately take him seriously and want to have a conversation. That has translated into business relationships and even invites to parties. As in, he drives a group to a party and they ask him to come in — which he said he often does.
If he really took it seriously and did it full-time, he figures he could make around $40,000 - 50,000 a year driving for UberX. And I believe that’s close to what a regular taxi driver would make. But again, that’s not why he’s doing it. Isn’t it interesting how things change?
UberX officially launched in Toronto today. Which means that Toronto’s taxi and limousine industry is about to get a lot more grouchy. For those of you who may not be familiar, uberX is Uber’s low-cost car service. Just like the regular version, you hail a car using your mobile phone. But this option will cost you 40% less than a regular taxi!
Here are sample rates from the Financial District to Yonge & Eglinton (midtown):
And from the Financial District to Pearson International Airport:
This is pretty exciting. Because as much as I think it’s great to use Hailo or Uber to hail and then pay for a car, the big problem in my mind has always been that cabs in Toronto are just far too expensive. The meter starts at $4.25 and shoots up faster than you can take a selfie in the backseat.
But obviously there’s an entrenched industry here that is not going to be happy about a startup eating into their fares. So I wouldn’t be surprised if we see a lot more backlash here in Toronto – as has been the case in many other cities. However I don’t think that’s a viable long term solution for the incumbents.
Uber is thought to be worth $18.2 billion right now. It’s probably not going to go away.
So instead of protesting and trying to ban it, we should be figuring out how to adjust to this changing reality. For the incumbents, this might mean lowering fares or figuring out a better way to differentiate themselves. A 40% discount is a pretty compelling value proposition. For me personally, I don’t know why I would ever pay more for a regular taxi, unless there was no other option.
On a side note, it’s worth pointing out that an uberX trip from downtown to Pearson is estimated to cost around $33 – roughly the same as what some people think the Union Pearson Express train will cost. That’s further evidence that charging a lot and targeting business travelers may not be the best strategy.
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