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Pathways to Consumer Insight

August 1, 2008

Taxi? Fuggedabadit

by Filed under Consumer Products, Consumer Services

“Walk? Not bloody likely!” Eliza Doolittle in Shaw’s play Pygmalion memorably declared, “I’m goin’ in a taxi!”. This may be the last recorded expression of unconditional enthusiasm for taxicabs as a mode of transport. In today’s world, you are more likely to hear a string of complaints about them. A taxi ride seems to be one of those products or services which consumers pay for because they have to, not because they want to.

In a world of increasing product harmonization, is a standard-issue cab ride a more or less standardized experience around the globe? On some measures it probably is. Taxi users everywhere are united in their complaints about high prices, indirect routes, surly drivers, mysteriously defective taxi-meters, and the fact that you can never find a cab when it’s raining. (Actually that last one is sort of a back-handed compliment to this much reviled mode of transport. There are moments when we actually need a cab).

However, the complaints about high prices may not always be justified. An examination of available sources on five large cities in different corners of the Americas suggests that price is only part of a complex of variables determining how many people use taxis in a given market.

In a recent comparison, Los Angeles was charging the highest urban taxi fares in the world, at just under $15 for a 3-mile ride. New York was not far behind, and both cities showed low figures for “used a taxi yesterday”. Coincidentally, high percentages of Angelenos and New Yorkers own their own cars. By contrast, both cab fares and car-ownership are dramatically lower in places like Buenos Aires and Mexico City, and taxi usage is therefore higher. The principle seems to be that fewer private cars mean a bigger pool, both of taxis and of paying customers to ride in them. If it’s true, that means there are parallel economies of scale which hold down prices and increase uptake as a result. In many cities, taxis are a ‘commoditized’ alternative to a creaking and unreliable urban public transport system. One wonders if this ‘benign circle’ might possibly be repeated elsewhere. Could traffic congestion in New York and London be reduced by slashing 80% off taxi fares? We will probably never know.

Of course a taxi ride is not just about getting from A to B. It’s also an opportunity to exchange views with one of the most dogmatically opinionated people on the planet. New York cabbies, in Pi’s experience, know very little, but have strong opinions on just about everything. If their passenger is brave enough to voice an opinion of his own from his perspex prison-cell in the back of the car, chances are he will be sharply told to “fuggeddabadit”. London cabbies, by contrast, really do know everything. Since London traffic has now apparently slowed to an average speed of less than 5 miles an hour, even a ride of a few blocks gives your driver the chance to share with you the full extent of his knowledge about the entire universe, sometimes twice.

What of the “in-taxi experience”? Depending on where in the world you hire your cab, its interior fixtures and décor will probably differ in exotic ways. The miniature football boots dangling from the rear-view mirror will be the same, but everything else will be a tribute to the uniqueness of local culture. In Mexico, for instance, the inside of a taxi is often decked out like a religious shrine Crimson ‘altar cloths’ fringed with gold tassels cover the dashboard. St. Christopher medals and images of the Virgin of Guadalupe dangle distractingly in front of your driver’s eyes. (This is so that he can take his hands off the steering wheel and clutch onto something genuinely reliable when a traffic accident is imminent). In Saudi Arabia, Pi was told, you will find cabbies watching miniature TV sets while driving you around. One nervous English passenger asked if this wasn’t a rather dangerous practice. “Not really”, said the driver, “at least it’s not as dangerous as reading the newspaper”.

The importance of in-cab appurtenances should not be underestimated. The taxi market is apparently governed by a “price-to-kitsch ratio”. Comparative figures reveal that the cheapest cab-rides are to be had in Mumbai, Bangkok, Jakarta and in the rainbow-colored ‘jeepneys’ of Manila. Coincidentally, these are all cities where taxi-drivers vie for the honor of owning the most exotically decorated taxi on the street. How different from the sober black of London taxis, (which of course cost a lot more to ride in).

The mathematical principle at work here seems to be that the fare charged for a cab ride varies in direct inverse proportion to the garishness of the vehicle’s décor. So, when hailing a cab in foreign parts, Pi advises you to keep an eye out for fairy-lights, gold trimmed crimson altar cloths, holy medallions and little flashing neon football boots. You’ll probably save money.

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