Will Uber’s price reforms really lead to a decrease in fares of as much as 40%? 

Taxi drivers have suspended a protest in Dublin after their trade union representatives were invited to a meeting with Department of Transport officials. 

The industry fear that Uber’s new pricing plans will mean journeys available for less than the current metered fare - forcing them to charge less or end up forced out of business. 

On The Pat Kenny Show, economist David W. Higgins said that cheaper Uber fares would inevitably impact the price traditional taxi drivers can charge. 

“The argument that they're making is that their fares will be down 30 or 40%,” he explained. 

“That is the claim that assumes that every fare that taxi drivers will take in future will be all of those fixed fares. 

“And we know the taxi markets are more complex than that; there are a mix of different apps.” 

Taxis in line at night in Temple Bar. Picture by: Ian Pilbeam / Alamy Stock Photo

Mr Higgins noted that fares have “gone up quite a bit” in recent years, reflecting the rising cost of living. 

“What Uber are trying to do by coming in here, I think they're trying to shock the market, right?” he continued. 

“And say, ‘Look, Ireland has this system of these maximum fares; there's no law that says you can't do a fare below it.’

“But there's also no law that says you can't do a fare above it.”

While Mr Higgins believes there could end up being more flexibility in terms of pricing, he also believes it will not mean the end of taxis.  

“I spoke to a friend about this who's based in London and he told me that Uber has taken a big market share there,” he said. 

“But he described to me that the black cabs are making a bit of a revival there; that sometimes Uber can't fill every need that people are looking for. 

“So, you know, there's always that option of going to hailing on the roadside, ringing up someone.” 

Main image: A Dublin taxi rank. Picture by: Alamy.com.