Without innovation, the world stands still.
We need to innovate to continue advancing society and our way of life. Innovation and technology are vital to the coming future of our world.
However, not everyone likes innovation or wants it to succeed. Sometimes self-interest and protectionism get in the way.
And there’s no bigger example of this than the existing taxi industry in Australia.
But first you have to realise that innovation is inevitable. Those that innovate thrive. Those that don’t…die.
Soon in Australia two of the most innovative companies in the world will go head to head against the taxi industry. One already is, another is coming. And both combined will spell the end of taxis as you know them.
As you’d expect I’m the biggest fan of how technology can help improve our lives. I think it’s possibly the single most important thing in the modern world.
In general the average person in the street probably appreciates, in one form or another, the technology around us. Particularly in Australia this appreciation of technology comes through the humble smartphone.
Most of us carry one. And most of us use a variety of apps and programs to manage our day-to-day lives.
So on the balance of it, society recognises the need for technology and innovation.
However, there’s one massive hurdle that stands in the way of progress. And the scary thing is this roadblock is supposed to be representative of society.
That’s right, the single biggest threat to the progress of society through technology and innovation is the government.
This isn’t a local problem confined to Australia, either. This is a global problem.
Government is the biggest control-freak in the world. There’s little they won’t stick their noses in to mess about with. And they’re killing innovation.
Victorian Transport Minister, Terry Mulder, and the Taxi Services Commission (TSC) highlighted this last week.
Mulder and his Vic government cronies look set to do their best to stifle any kind of innovation in Victoria.
This has all come to a head because Uber has started to advertise for people to join their Uber network.
Let me explain this in a bit more detail. You see, why Uber is advertising is as important as why the government wants to shut it down.
There’s a company in the US that is a ‘ride sharing’ company. Their name is Lyft. Now Lyft isn’t your typical car sharing company. How Lyft works is you log into the app, say where you’re going and then someone, anyone, just an ordinary person can give you a ‘lyft’ to your destination.
You get the name of the person giving you a lyft, you see their car, and can track their progress to your location. So it’s all very above board and every driver is background checked before being accepted into the network.
When you arrive at your stop you pay through the app with the payment card stored on the system.
It’s safe, secure, convenient and easy.
One thing to note is this isn’t a taxi service. This is ordinary people, people like you and me, who own a car, giving people rides for an affordable rate. It sounds like a taxi service, but it’s not. It’s not like anything before it. And that’s what government can’t handle.
You see Lyft is the perfect example of a thriving company in a reputation-based economy.
That means if a driver has a bad reputation, they don’t get pick-ups. And likewise if a ride had a bad reputation no driver will pick them up.
Lyft is a thriving, growing company in the US. And soon they’ll be branching out across the globe. Lyft is a direct threat to the existing taxi industry. But even more so, they’re a direct threat to Uber.
So rather than ‘sook-up’ and go whinging to the government like the taxi industry does, Uber is being proactive.
Competition breeds innovation. And Uber is one of the most innovative companies in the world. So they’ve decided to use their existing network and technology to expand the Uber offering.
UberLowCost is Uber’s alternative to Lyft.
So now Uber effectively has four services levels. Uber Lux, Uber Exec, Uber X and soon…UberLowCost.
You want a luxury ride. No problem. Or maybe you want a black car, something comfy but not too pricey? Easy. How about just a normal cab-like car? Done.
Now, you can even just catch a ride with a friendly neighbour. UberLowCost and Lyft will dominate the way we pay to get a ride around town.
And not just dominate. These two companies will literally shut down existing taxi networks.
Well, I say that on the assumption the government doesn’t ban them completely.
The government doesn’t like too much change. And innovative companies like Uber and Lyft, they really dislike.
A spokeswoman for the transport minister told The Age, ‘The TSC is currently investigating this practice and will take appropriate action if such activity is detected in Victoria.’
The minister’s office is directly talking about Uber. More specifically it’s Uber’s new low cost service that’s really thrown the cat amongst the pigeons.
‘UberLowCost’ is coming. And it seems the government might even outlaw Uber all together because of it.
They further said, ‘The Taxi Services Commission strongly discourages any members of the public applying for any job advertisements that offer quick cash for providing taxi and hire car services using a private vehicle.’
So not only are they preparing for the worst, they’re actively trying to turn people away from Uber.
What is happening is another example of government persecuting technology-based companies for challenging the norm. All Uber and Lyft do is provide an alternative to the traditional means of getting around town.
They simply provide a network for people to make their own decisions and choices. They use technology to enable and empower people to take command of their lives.
Like AirBnb empowers homeowners to make extra money from their property, Uber and Lyft empower car owners to do the same with their cars.
Now these companies wouldn’t be as successful as they are if there wasn’t a demand for a better service. And they certainly wouldn’t work if the existing system catered to the needs of people.
There’s a social revolution underway.
The attitude of the younger generation has already shifted. Their trust is in their technology networks. Whether that’s Facebook, AirBnb, Uber, SnapChat, Instagram or Tinder, all are examples of trusted networks.
This is a trend you’ll only see more of. People place more trust in technology driven networks like Uber and Lyft as opposed to old, broken, bureaucratic systems like the current Taxi Service.
The key themes are trust, reputation and a technology driven network of like-minded people.
These are all elements government cannot handle. Government also doesn’t have the skills or resources to innovate like these companies can.
That means your typical Silvertop taxi will continue to run. And they’ll continue to flounder in a failing system. But Uber will only get bigger, and more powerful. And then Lyft will find its way to Australia. Together, they will crush the taxi industry.
But again the only thing that will stand in the way is government. Legal challenges, legislation, and media beat-ups are already flowing thick and fast.
A massive showdown is brewing here. In one corner is the broken, corrupt, failing bureaucratic system we call government. In the other corner are innovative, intelligent, reputation based technology companies like Uber and Lyft.
The winner will be decided by the way in which we act. The weight of numbers of society will prove that we want a better way. That we deserve a fairer go. And it’s through these technology companies that we get it.
Already you can see the writing on the wall. In fact, we’ve already chosen the winner, and that’s why the government is terrified.
Regards,
Sam Volkering+
Editor, Tech Insider
Ed Note: The above article was originally published in Sam Volkering’s Tech Insider.