Uber now operates in Russia and soon may operate in Ukraine

[Larry1]

For those of you who haven't heard of Uber, it is a business that connects customers with its drivers. You use an app to request a driver to pick you up and take you to where you want to go.  It's similar to a taxi.

I didn't realize it was operating in Russia until I saw this article:

Ride-sharing service Uber will distribute ice cream for free in 250 cities around the world tomorrow, including three cities in Russia.

 On July 24, new Uber subscribers in Moscow, St. Petersburg and Ekaterinburg will be able to order an Uber Ice Cream set of four Mövenpick ice cream portions. The ice cream, which comes in chocolate, strawberry-raspberry, walnut and tiramisu flavors, is free, but users will have to pay a delivery charge of 250 rubles ($4.38).

Uber users make the order via the Uber app, where they will have the option to choose "Ice Cream" and insert the delivery address.

http://www.themoscowtimes.com/news/article/uber-to-deliver-free-ice-cream-in-3-russian-cities/526094.html

I've complained about some taxi drivers in Kiev and Odessa gouging foreigners (the $400 taxi ride one guy I know took from the Donetsk airport to Lugansk several years ago comes to mind). Using Uber might help to avoid this sort of thing, at least in cities in which Uber is operating. A quick look at Uber's website reveals that they aren't yet operating in any city in Ukraine or Belarus.  But then again, maybe their website's location list hasn't been updated. I didn't see Ekaterinburg on the list.

Edited to update: It looks like Uber will soon be operating in Ukraine.

Company's web site advertises vacancy for top manager position in Kyiv

Uber, a US-based business project that competes with traditional taxi business around the world, is looking for a head of its mission (general manager) in Kyiv.

The information about the vacant position was published on the company's website. Now the service works in more than 300 cities around the world and plans to expand further.

http://uatoday.tv/news/uber-to-launch-in-ukraine-448557.html

[SANDRO43]

Edited to update: It looks like Uber will soon be operating in Ukraine.

Possibly because its life is being made difficult in countries like Italy and France, following strong protests by the local cabbies .

[Larry1]

Possibly because its life is being made difficult in countries like Italy and France, following strong protests by the local cabbies .

Yes. Taxi owners/drivers hate the competition. Some of the big taxi service owners here have given major campaign contributions to some local officials in a bid to protect their businesses from such competition.

[alex330]

Dunno if Uber is better than the current method in Odessa. You just hold out your hand and any car will stop and give you a ride for next to nothing.

[Larry1]

Dunno if Uber is better than the current method in Odessa. You just hold out your hand and any car will stop and give you a ride for next to nothing.

How safe is that?

[alex330]

Everyone does it without any issues. Just a way to help with gas money if the car is going your direction. One time my wife quickly hid her outstretched hand as a black Mercedes SUV drove by. "These cars not safe" she later told me.

[Faux Pas]

Yes. Taxi owners/drivers hate the competition. Some of the big taxi service owners here have given major campaign contributions to some local officials in a bid to protect their businesses from such competition.

They have investments to protect. The badge (license) for a single cab in NYC for example can run into the millions. They are privately owned and get sold from one individual to another. NYC like many major metropolitan cities limit the number of cabs on the city streets. IMHO, it is another longtime business that will compete and get ripped to shreds by the internet

[Fashionista]

How safe is that?

There's a gazillion small taxi companies in Russia. Uber will not make a lot of money there, as there is already a huge choice of people lining up to take you anywhere for very little money.


They are not safe though, but for a different reason. They drive like mutant maniacs and they get offended if you put a seat belt on 

[SANDRO43]

They have investments to protect. The badge (license) for a single cab in NYC for example can run into the millions. They are privately owned and get sold from one individual to another. NYC like many major metropolitan cities limit the number of cabs on the city streets.

Same story here, I had a look and Milan licenses sell for around €180,000 .

IMHO, it is another longtime business that will compete and get ripped to shreds by the internet

It may take a long time, cabbies are a powerful lobby and, when they go on strike, municipal authorities start long runs of negotiations - local citizens became very vocal about a suddenly unavailable public service .

[I/O]

Dunno if Uber is better than the current method in Odessa. You just hold out your hand and any car will stop and give you a ride for next to nothing.

Yep - Uber is no different other than using an app rather than your hand. You have no clue who your getting and Uber have no more clue - go register as a driver and register your whoknowshowoldpieceofshit and hey presto, your a Uber driver.

I could explain at length but suffice to say, what the taxi industry world wide is asking for is not zero competition but a level playing field - for the most part regulated taxi jurisdictions are fairly similar, minimum age vehicles, minimum insurance levels, licencing fees, vehicle inspections / compliance checks, driver licencing fees etc but most importantly, a maximum tariff rate. Uber have a surge pricing model whereby, when there is high demand, they increase the price and as we saw not so long ago during the siege in Sydney, by anything up to 8 or 10 times normal fares. Taxi drivers would be very happy to operate under the same model..!! But, conversely, watch what happens when it goes quiet - try getting a Uber driver then - none to be found whereby regulated taxis must supply 24/7.

Uber is bankrolled by Google and Virgin, both have long experience as 'disrupters' and long pockets - the taxi industry will never be the same and in some ways, that's a good thing but as yet, the internet is to some extend the "Wild West" and I think we need to be mindful of the fact that regulated industries came into being for very good reasons, not least among those are continuity of supply, safety and accountability. Ubers model (AKA Air BnB, Gocatch and a few others) can assure none of those and a lot more.

What we will see in time is taxi plates world wide devalued (we have already) to more or less extent, people trying to short cut to reduce costs and Uber drivers doing exactly the same (they are already) - the net result will be (some time down the track) an overall reduction in quality to the point of forcing regulators to undertake severe reviews of passenger transport regulations in the civilised areas (and in this context I absolutely exclude Russia, Ukraine and much of Asia) which in turn will ultimately create a more protected operating environment than currently exists.

One needs to understand that driving as a Uber provider is not a viable living in and of itself anywhere in the world currently - it is a supplementary income and as such creates continual churn of drivers. Ultimately it burns the potentially interested supply of drivers in a given area so in the simplest terms, in the long term, is not a sustainable model in the present form. I suspect the present model is not designed as a long term stayer but a short term disrupter - will be interesting to see where they go next but the "Ice cream" delivery is a pretty good clue I suggest. If I were DHL or a Postal worker or similar, I'd be as nervous as the taxi industry right now. 

That said, remember when the old economy stocks were allegedly dead and the dot coms bombs were 'in'? What ended up happening was the old economy stocks used the so called new economy stocks to reshape their own business models for greater profit - go do some research on how GE reshaped themselves using new economy stocks (dot coms), especially when it came to screwing their suppliers. It may be out of this that the taxi industry dies but I think one thing is being missed - there is an underlying misplaced assumption the taxi industry will do nothing (other than a few drivers protesting) to reshape.  There is already a fair bit happening in the booking, pricing and payment spaces - it'll be interesting to see where this one goes.

[Chicagoguy]

Rode with my wife's cousin in May in Russia and he operates sort of like Uber. Drives like a maniac and totaled his car shortly after we left. Now he has another and is at it again. Admits he is illegal.

Uber driver was in accident in Chicago recently and had a name I could not pronounce. That and a 15 year old car. Maybe it was a Checker

[alex330]

If I were DHL or a Postal worker or similar, I'd be as nervous as the taxi industry right now. 

That will be the next market to take a bit hit. As well as real estate agents. Both industries are being targeted by startups.

[Larry1]

They have investments to protect. The badge (license) for a single cab in NYC for example can run into the millions. They are privately owned and get sold from one individual to another. NYC like many major metropolitan cities limit the number of cabs on the city streets. IMHO, it is another longtime business that will compete and get ripped to shreds by the internet

Some Russian taxi companies are lobbying for restrictions on and investigations of Uber and similar services:

Russian Taxi Firms Lobby for Restrictions on Internet Services

... Like taxi firms in other countries, Russian companies have seen their market share and profits eroded by competition from Internet-based operators including Uber, Yandex Taxi and GetTaxi.

Uber set up a representative office in Russia in 2013.

Both the Federal Anti-Monopoly Service and the Public Chamber have received requests from drivers' organizations to look into whether the major Internet-based taxi providers violate any laws, according to Kommersant. Industry lobby groups have also appealed to Russian prosecutors to check the legality of their rivals' operations.

Uber, Yandex and GetTaxi have denied that they are breaking any laws and contend that increased competition is healthy for Russia's multibillion-dollar taxi market.

Earlier this month, taxi drivers in St. Petersburg wrote an open letter to Governor Georgy Poltavchenko urging him to ban Uber, GetTaxi and Yandex Taxi because of a “critical" situation.

http://www.themoscowtimes.com/news/article/russian-taxi-firms-lobby-for-restrictions-on-internet-services/526283.html

I had never heard of GetTaxi or Yandex Taxi.  Maybe this publicity will be good for their business.

[msmobyone]

blablacar.com

DOES operate in Russia and I heard about it from Russians - and have used it in NL,UK, Belgium

It is a long distance ride-sharing app that I reckon will be popular