The UBER application, for a new generation of taxis

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Having demonstrated its effectiveness in several large US cities (San Francisco, New York, Boston, Seattle, etc.), the “UBER” application, which lets you quickly find a driver using your smartphone, is coming to France, initially to Paris. Although Uber’s functionality may come as a genuine relief, to Parisian night owls in particular, it could also cause certain conflicts with those companies already present in the market.

The UBER application refers directly to the private company of the same name, and has a very simple concept: to make qualified drivers available to people living in large cities via a mobile application (on iPhone or Android) that combines geolocation with automated payment.

All you need to do is connect to the application and within seconds you can locate the closest driver, order the car and even watch it approach on your screen, with the associated waiting time. There’s no need for cash nor to hunt down cash machines: your credit or debit card is recorded and automatically debited (tip included!). The price of the journey is calculated on a fixed rate, thereby avoiding any unpleasant surprises on arrival.

However, all of this has a price. UBER is in fact at the ‘high-end’ of the market, using elegant black saloon cars and offering a personalised service. Obviously, this means that it is slightly more expensive than a traditional taxi company.

Strong competition for Parisian taxis?

UBER’s strength lies in its response to the genuine demand that can be inferred in various large global cities and that seems prevalent in Paris: the need to increase the number of taxis available in town. After a certain time of day, it becomes very difficult to find an available taxi!

However, the question of coexistence – between existing companies and this new service –arises: how will the market now organise itself?

Whilst awaiting this outcome, UBER has already deployed sixty cars in the City of Lights. And intends to set up in twenty-five other cities next year, mainly in Europe.