Tag: union pearson express

• Taxis just got 40% cheaper in Toronto

  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.

  2014.09.08

• How much should a ride on the Union Pearson Express cost?

  When I was in Chicago a few weekends ago, one of the things we did was take the train from Midway Airport to downtown. We were a large group, but since it was only $2.25 and we figured it would be easier and faster than contending with traffic, we decided to take it.

  Since it was their local transit service (as opposed to a dedicated airport rail line), the train came within a few minutes and it took us about 25 minutes to get to the Loop. It was a great experience. And I would take it again the next time I go to Chicago.

  I mention this because there’s been a lot of debate in Toronto recently about the potential ticket price for the new Union Pearson Express train to the airport. Some are suggesting that it could cost upwards of $30 for a one way ride, which would also take 25 minutes and would leave every 15 minutes.

  The concern is that at this price, the train will only serve the business community and the rich. And indeed, it’s a lot more than the $2.25 I paid when I landed in Chicago earlier this month. But at the same time the Union Pearson Express promises to offer a more refined travel experience than your regular old subway train. So how should it be priced?

  Pricing exercises are really interesting because, as David Fitzpatrick pointed out in a recent tweet, increasing the price of the ticket will lower ridership. And at a certain point, this will cause overall revenues to also decline (the loss in ridership stops being made up by the higher ticket price). So, in theory at least, there exists a magic, profit maximizing number.  

  Of course, profit may not be the only goal. One might also be interested in reducing the number of vehicles on the road, promoting sustainability, and generally providing people with a convenient way to get to and from the city’s biggest airport. And should this be case, then those factors also need to be worked into the pricing model.

  Now, I don’t know what that magic number should be off hand, but I do think we need to be clear on our goals as that decision is made.

  I personally believe that we underprice roads in this city, which is why we have such a supply and demand imbalance (i.e. gridlock). And so if we decide that rail travel should be a premium service, then I don’t think it’ll do much to correct that imbalance.

  2014.08.27

• To drive or not to drive

  I’m writing this post from some lounge called Apropos at Toronto’s Pearson Airport. I’m waiting to board my flight to Denver and kick-off the 5th Penn Annual. Technically, the Annual is being held in Jackson Hole this year, but 2 of us are jamming in a few extra days in Vail beforehand. I like to make the most of these trips.

  As I was arriving at the airport, I made sure to check up on the status of the new Union Pearson (UP) Express station that’s currently under construction and slated to open in spring 2015. Once the line is complete, Union Station and Pearson Airport (Canada’s two busiest transportation hubs) will be connected by a 25 minute express train operating every 15 minutes. I’m pretty excited about this.

  One of reasons I’m excited is because I think that really great cities should be easily navigable without a car. I’m not saying that cars shouldn’t be allowed or that we should make life purposely difficult for drivers; I’m saying that the decision of whether or not to use a car should be entirely personal. Some parts of Toronto meet this criteria, but other parts most certainly do not.

  One of the parts that doesn’t is the trip to Pearson. Today, getting from downtown to Pearson on public transit is a terrible experience. I don’t recommend it. And so you’re basically forced to drive, get a ride or take a taxi. That’s fine, but it’s not ideal—particularly for non-residents.

  I like to think of visitors to a city as customers of that city. From the moment they land in the airport, they’re now using your product or service. And for most people, the first thing they’re thinking about is how they’re going to get to where they need to go. How are you going to help them?

  If you can put them onto an express train, and quickly and comfortably bring them into the city, then you’re already impressing them. Unfortunately though, we often don’t think of visitors in this way—unless you’re hosting some major event like, say, the Pan American Games. Then you really start to think about customer experience.

  Either way, the Toronto experience is about to get a whole lot better next year. And I’m excited about that.

  2014.02.02