CABS.COM TARGETS UBER DRIVERS WITH ‘CAB FIRM IN A BOX’ PROPOSITION THAT CAN EARN THEM ADDITIONAL REVENUE
– Drivers can set up own company at a fraction of the cost and with far higher profits than under Uber –
(London, 28/5/19) Cabs.com (www.cabs.com), the cab firm aggregator, today added to its digital offering by launching its ‘Cab Firm In A Box’, aimed at Uber drivers. The new service will enable independent cab drivers to effectively set up their own cab firm to rival Uber at a fraction of the cost and with all the additional financial benefits of ownership and increased profit.
Currently Uber drivers pay 25% commission on each fare. Cabs.com charges only 10p a fare, on top of £30 per month for a fully-automated dispatch system, driver app, and consumer digital hailing app – all the ingredients required to operate your own taxi company! This equates to about one-tenth of Uber’s charges.
“The Uber business model is unsustainable, as witnessed by its disappointing flotation and subsequent drop in share price. Uber has never been profitable and recently posted an operating loss of $1.3bn. Furthermore, its greedy commission system and refusal to award its drivers employment rights mean many are living on the breadline or even operating at a loss.
Cabs.com, by comparison, does have a sustainable business model, at a tenth of the cost of Uber. This makes the world of digital hailing affordable both to the 15,000 independent cab firms in the UK and, via our new ‘Cab Firm In A Box’ concept, to entrepreneurial individual drivers who would like to set up their own business.
Setting up your own cab firm is very easy, particularly for those who already have a PHV licence and a car. We provide advice on all the administrative and legal steps that need to be taken to secure an operating licence, making the process very straightforward. For a company with 10 cars an operating licence, in London, would only cost £40 per driver per year. It would be a strong proposition for drivers to band together locally/regionally under the Cabs.com umbrella and create an effective local rival to Uber.”
There have been significant financial disputes between Uber and its drivers, both in the UK and worldwide, culminating in a strike two weeks ago, where drivers demonstrated about only earning an average of £5 per week, well below the £8.21 legal minimum. They also demanded a reduction in Uber’s commission from 25% to 15% and an increase in the mileage rate to £2 from £1.25. Uber classifies its drivers as self-employed, making them free to extend their earnings elsewhere, including working for other cab companies, or setting up their own.
Ahmed (surname withheld as still an Uber driver) commented:
“I have done over 11,000 rides for Uber, starting in 2014. In the early days I made £1500 a week. Now I’m lucky to make £400 a week due to lower fares and more competition. And that’s at Uber’s earlier lower commission of 20% (it’s 25% now)!
I am keen to start up my own cab firm with Cabs.com. I will only pay 10p per fare commission and £30 a month. This is way cheaper than Uber and I might one day be able to sell the firm for a nice retirement!”
Cabs.com currently lists over 8000 of the UK’s cab firms on its website and already provides traffic and business to these companies. On the 7th May it launched its technology platform which enables all of these to participate in the growing digital hailing revolution. This comprises a sophisticated dispatch software package and state-of-the-art driver and passenger apps. Cabs.com’s vision is to migrate many of these independent cab firms to its technology, providing the consumer with digital access to a truly nationwide network of private hire cabs not currently available, potentially 2 to 3 times as many as Uber, and with real UK coverage, urban and rural.
Cab.com is an aggregator of cab firms to whom it offers services. These include website listings, a dispatch software package, driver and passenger apps, all designed to help the cab firm move cost-effectively into the new wave of digital hailing. (Full details available on request)
The UK market comprises some 15,000 cab firms, operating some 250,000 cabs, worth £7 billion. Worldwide there are around 2.4 million cabs.
It was founded by William Berry, who is also CEO. Berry is an established entrepreneur with three successful exits. His previous companies have included accommodationforstudents.com, the UK’S no 1 student accommodation website, Thomas Charles, a highly successful IVA company, and Conferences UK, a successful online conferences/venues search service.
William will be speaking at MOVE 2020, the world’s most important mobility event, where disruptive technology and innovation drive much needed change. This takes place at Excel, London, on February 11/12, 2020. His topic will be ‘Cab companies: Banding together to fight back’.
Please contact us below if you would like to learn more about Cabs.com or arrange an interview with William Berry.
Pics available on request.
For further information please contact:
Stewart Ross (PR121)
Tel: 07966 540787
William Berry (Cabs.com)
Tel: 07902 644967