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.
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.
I’m a big believer in public transportation. I generally believe that the only way to build a big, efficient, and sustainable city is on the backbone of a good transit system. But at the same time, I’m open to fresh ideas. And I’m concerned with the inability of most cities to actually build transit in a way that meaningfully responds to demand.
So what are the alternatives?
The first thought that comes to mind is the delivery system itself. Some cities, such as Hong Kong, have successfully combined transit delivery with real estate development as a way to improve the economics behind building transit. And I think that makes a lot of sense.
But my other thought is that maybe the solution to urban mobility is something completely new. Maybe Google is on to something with their driverless cars. Is that the future? Many would disagree.
We’ve established that cars don’t work all that well for getting people around in big congested cities. So what difference would it make whether or not the cars have a driver or not? Well, I was thinking about this last night and there are some meaningful differences.
Yesterday news broke that Target is opening a two-storey, 145,000 square foot store at the base of a new mixed-use development in Toronto’s emerging South Core neighborhood. The site is at the north east corner of York Street and Harbour Street. And the larger development, called Harbour Plaza, will include a 35 storey office tower and 2 residential condominium towers at 65 and 69 storeys.
Here’s the location map:
And here’s the site looking east from York Street:
This is going to be huge for Target. The amount of current and proposed density within a short radius of the site is mind boggling. In addition to Harbour Plaza itself, look at what’s planned for 1 Yonge Street
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.
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.
I’m a big believer in public transportation. I generally believe that the only way to build a big, efficient, and sustainable city is on the backbone of a good transit system. But at the same time, I’m open to fresh ideas. And I’m concerned with the inability of most cities to actually build transit in a way that meaningfully responds to demand.
So what are the alternatives?
The first thought that comes to mind is the delivery system itself. Some cities, such as Hong Kong, have successfully combined transit delivery with real estate development as a way to improve the economics behind building transit. And I think that makes a lot of sense.
But my other thought is that maybe the solution to urban mobility is something completely new. Maybe Google is on to something with their driverless cars. Is that the future? Many would disagree.
We’ve established that cars don’t work all that well for getting people around in big congested cities. So what difference would it make whether or not the cars have a driver or not? Well, I was thinking about this last night and there are some meaningful differences.
Yesterday news broke that Target is opening a two-storey, 145,000 square foot store at the base of a new mixed-use development in Toronto’s emerging South Core neighborhood. The site is at the north east corner of York Street and Harbour Street. And the larger development, called Harbour Plaza, will include a 35 storey office tower and 2 residential condominium towers at 65 and 69 storeys.
Here’s the location map:
And here’s the site looking east from York Street:
This is going to be huge for Target. The amount of current and proposed density within a short radius of the site is mind boggling. In addition to Harbour Plaza itself, look at what’s planned for 1 Yonge Street
Brandon Donnelly
Daily insights for city builders. Published since 2013 by Toronto-based real estate developer Brandon Donnelly.
A network of driverless cars would give us perfect information about all to the cars on the road. Similar to to how Google’s Waze navigation app feeds off user input (both active and passive), we’d know the exact number of cars on the road and the precise point in which additional cars would cause a drop in efficiency (i.e. a reduction in vehicle speeds).
At the same time, it could enable a powerful sharing economy. In a recent study done by MIT’s Senseable City Lab, it was found that roughly 80% of New York cab rides could be shared. That is, 80% of the time there’s somebody else who’s also traveling from roughly the same point A to the same point B.
So here’s what I’m thinking.
You use Google’s driverless car technology and the perfect information you get from the networked vehicles to create a fluid and ever-evolving transit network. What I’m imagining is that the driverless vehicles don’t operate based on a model of individual mobility; they instead operate on a principle of batched mobility.
Let’s say for example that there are critical mass of people who want to leave Liberty Village between 8:00am - 8:30am to travel to the Financial District. What they would do is enter this itinerary and then a “station” would get formed somewhere nearby. Users would get notified of the station’s location, which would be determined based on proximity to the highest concentration of “riders.”
The driverless cars would then get notified and would begin assembling the appropriate number of vehicles at the selected station location. As is the case with conventional forms of public transportation, most people would need to walk to the station. But never that far.
In essence, it would function as a cross between private and public transportation. You would get the economies of scale generated by public transit, with some of the individual conveniences of private transportation.
How does that sound?
.
Plus with Union Station next door, I dare you to try and find a better connected mobility hub in the region. Now all of a sudden that retail radius gets even bigger. I can easily imagine suburbanites picking up a few things before they hop on a GO train (our regional rail system) and head home.
As of right now, they’re also the only game in town, as far as big box stores in the central core are concerned. But I wouldn’t be surprised if we see a competitor emerge alongside the 1 Yonge project. The site is big enough for one and Walmart isn’t going to want to get shut out of the area.
My only hope is that, from an urban design standpoint, the project is able to enliven and give back to Harbour Street. Right now it’s an arterial road with really no redeeming urban qualities. But with the York Street off-ramp being relocated and the park underneath it being expanded, now is the time to really transform the area.
Let’s hope Harbour Plaza does that.
A network of driverless cars would give us perfect information about all to the cars on the road. Similar to to how Google’s Waze navigation app feeds off user input (both active and passive), we’d know the exact number of cars on the road and the precise point in which additional cars would cause a drop in efficiency (i.e. a reduction in vehicle speeds).
At the same time, it could enable a powerful sharing economy. In a recent study done by MIT’s Senseable City Lab, it was found that roughly 80% of New York cab rides could be shared. That is, 80% of the time there’s somebody else who’s also traveling from roughly the same point A to the same point B.
So here’s what I’m thinking.
You use Google’s driverless car technology and the perfect information you get from the networked vehicles to create a fluid and ever-evolving transit network. What I’m imagining is that the driverless vehicles don’t operate based on a model of individual mobility; they instead operate on a principle of batched mobility.
Let’s say for example that there are critical mass of people who want to leave Liberty Village between 8:00am - 8:30am to travel to the Financial District. What they would do is enter this itinerary and then a “station” would get formed somewhere nearby. Users would get notified of the station’s location, which would be determined based on proximity to the highest concentration of “riders.”
The driverless cars would then get notified and would begin assembling the appropriate number of vehicles at the selected station location. As is the case with conventional forms of public transportation, most people would need to walk to the station. But never that far.
In essence, it would function as a cross between private and public transportation. You would get the economies of scale generated by public transit, with some of the individual conveniences of private transportation.
How does that sound?
.
Plus with Union Station next door, I dare you to try and find a better connected mobility hub in the region. Now all of a sudden that retail radius gets even bigger. I can easily imagine suburbanites picking up a few things before they hop on a GO train (our regional rail system) and head home.
As of right now, they’re also the only game in town, as far as big box stores in the central core are concerned. But I wouldn’t be surprised if we see a competitor emerge alongside the 1 Yonge project. The site is big enough for one and Walmart isn’t going to want to get shut out of the area.
My only hope is that, from an urban design standpoint, the project is able to enliven and give back to Harbour Street. Right now it’s an arterial road with really no redeeming urban qualities. But with the York Street off-ramp being relocated and the park underneath it being expanded, now is the time to really transform the area.
