UberX is a ride share car service that is in competition with taxi companies. Customers download the UberX app that allows them to access a supply of drivers within the area. During peak hours prices fluctuate with the demand, but there tends to be a higher supply of UberX vehicles available compared to taxis. Moreover, during regular hours, UberX services offer about 30% lower fares to its riders. Politicians and taxi drivers alike are not fond of this new development within Canada. This service takes away significantly from the customer base of taxi companies, however consumers seem to love it.

The increasingly high fare of riding a taxi in busy metropolitan cities has allowed UberX to become a disruptive innovator. Although law suits are being filed to deter the expansion of UberX due to lack of safety and licensing, it is unlikely this will go through. Consumers will quickly accept the lower fares, higher supply and convenience of Uber’s car services. Once imposed in densely populated cities of each province, it will be difficult for taxi’s to combat this new competitor. In order to prevent loss of customers, taxi services may need to consider lowering their prices and developing smartphone accessibility through downloadable apps, to match that of UberX, or else risk being displaced. This ongoing topic could change downtown Vancouver’s taxi services in the very near future.

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