For commuters like Pornsawan “Uh” Srisuwanna, being rejected by taxi drivers is a daily frustration.
Are you gonna go my way?: The days of having to negotiate with taxi drivers could be coming to an end with the rise of smartphone apps.
“It takes me almost half an hour each day to find a taxi from the Pathumwan area that is willing to take me back to Pin Klao where I live,” the 32-year-old said.
“After a long and exhausting day at work, I just want to sit back and relax in the back seat of the taxi all the way home, but that seems almost impossible.”
Ms Pornsawan is one of a growing number of Bangkok commuters who, angered by rip-offs, rude drivers and substandard services, are turning their backs on conventional taxis.
With the rise of smartphones, that is becoming increasingly easy to do.
EASY STREET
“Nine”, 28, said she grew tired of constantly being rejected by taxi drivers, only to hear those same drivers grumble about how hard it was to earn a decent living. She decided to turn to a smartphone booking application to avoid the hassle of haggling with drivers on the street.
“As soon as I learned how easy and safe it was to use, I switched over permanently, and now I only ever use the app to call for a taxi,” Ms Nine said. “Even though I have to pay 20 baht on top of the meter fare, I am buying convenience and safety.”
There are currently three main taxi booking service apps operating in Thailand: Easy Taxi, Grab Taxi and Uber. Each has a slightly different strategy and business model that appeals to different groups.
While Easy Taxi and Grab Taxi work with existing taxi drivers, Uber opens its doors to private vehicles, and has drawn the most controversy. On Friday, as Spectrum went to print, the Department of Land Transport announced that Uber was illegal and would need to halt its Thailand operation.
When a passenger uses the Easy Taxi app, they will enter a pick-up point and destination. The app then uses GPS to show a map of available drivers in the area.
Those drivers — regular taxi drivers who have registered and been accepted by Easy Taxi — who are willing to accept the job will press a button and contact the passenger to pick them up.
For drivers, it means less time driving around the streets aimlessly, while for passengers it means there is almost no chance of a fare being rejected.
“We also act as the second screening process,” said Nattapak Atichartkarn, CEO of Easy Taxi Thailand. “The driver will already have to have met all Land Transportation Office requirements before they come to apply with us. We will then check their driving licence and criminal record before accepting them.”
Nattapak Atichartkarn, CEO of Easy Taxi.
FARE DEAL
Grab Taxi follows a similar model, though has a stronger focus on operating in Southeast Asia.
Vee Charununsiri, general manager of Grab Taxi Thailand, said safety was a serious concern for passengers, but apps were starting to address the issue. Grab Taxi provides the full name, photo ID and telephone number of its drivers when the passenger makes a booking. It also has a feature called “Share My Ride”, allowing you to send your taxi details to friends or family via SMS, Facebook or Twitter.
Passengers are also given a quote as soon as they enter their destination, giving them an idea of how much cash they will need.
“We want to show taxi drivers that we are trying to help them find passengers. Instead of driving around and wasting gas in their empty taxi, we are trying to find them a lot more passengers and help increase their income,” Mr Vee said.
Grab Taxi drivers must also undergo licence and criminal record checks. Once accepted, they will receive a 25-baht service charge on top of the meter fee for each trip they accept through the app. At the moment, neither Grab Taxi nor Easy Taxi make money directly from passengers or drivers, though that is likely to change in the future as their networks grow.
There are at least 10,000 taxis available in Bangkok for Grab Taxi with regional downloads for the app at two million. Easy Taxi has 8,000 taxis, with 500,000 app downloads in Thailand.
Vee Charununsiri, general manager of Grab Taxi Thailand.
AIMING HIGHER
While those two services utilise existing taxi drivers, Uber works a little differently, and for Bangkok customers also comes with a unique selling point.
“Wa”, 25, normally commutes in her own car. But if that’s not practical, she prefers not to be seen in any ordinary taxi.
“I have nothing against other taxis in the market, but for me, image is everything,” she said. “I always use Uber Black when I attend a function at a hotel. With the work I am doing, I can’t be seen in anything that is not stylish. Uber seems to answer my needs.”
Uber does not own or operate any vehicles and does not employ drivers. But instead of working with existing taxi drivers, it allows licensed transportation companies and ordinary individuals to sign up and jump behind the wheel.
It has two services — UberX, and the premium-level Uber Black, which attract different price premiums.
Uber claims to have a lot of users as well as drivers, but Mike Brown, Uber’s regional general manager, declined to share specific numbers.
“The response we’ve received from riders in Thailand have exceeded our expectations and the growing numbers we see every week continue to amaze us,” he said.
Hailing the end of taxi vexation
COST OF CONVENIENCE
While using any of the three apps can be convenient, that does come at a price, even if it’s often a very small one.
For the Easy Taxi app, the fee is 20 baht per trip on top of the meter price, while Grab Taxi costs 25 baht over the meter fare.
But Uber does things differently. Since the cars they use are not regular taxis, they do not have meters so Uber sets their own pricing structure.
For UberX, which typically provides smaller sedans such as a Toyota Altis, Honda City or Nissan March, the base fee is 25 baht plus 4.50 baht per kilometre or one baht per minute if idle. The minimum fare is 45 baht.
For Uber Black, essentially a limousine service using premium larger sedans or SUVs such as a Toyota Camry, Nissan Teana or Honda Accord, the base fee starts at 45 baht plus 9.20 baht per kilometre or 2.50 baht per minute. The minimum fare is set at 75 baht.
In Phuket, Uber’s fares are considerably higher.
“When you use Uber’s technology … you know exactly how far away your car is, who is coming to pick you up and the driver’s aggregated rating over all the trips he/she has completed,” Mr Brown said.
Hero status: Easy Taxi driver Charoen Pooyangdee says his income has increased dramatically.
IN THE DRIVER’S SEAT
While offering obvious benefits for passengers in terms of safety and reliability, the rise of these booking apps is also proving a boon for tech-savvy drivers — and is angering some traditionalists.
Charoen Pooyangdee, 46, has been driving a taxi for more than seven years. During that time, he has lived hand-to-mouth, never earning enough money to amass any savings.
That began to change when he was introduced to Easy Taxi.
“I used to drive around town looking for customers. Sometimes I would earn more than the cost of renting my taxi for the day, sometimes not,” Mr Charoen said.
“My life was also at risk since I drive the taxi by myself. There was no call centre or support group to look after me when I was driving to a risky area.
“But everything has changed since I was first introduced to the app. I can get one passenger after another. I can make at least 10 trips per day. I earn a lot more money from the constant customers that I can get, as well as extra bonuses.”
Mr Charoen is a high-ranked driver with the company, earning “Hero” status from using the app to collect passengers more than nine times a day. Simply by attaining that status, he earns a 520-baht bonus.
He also said a lot more of his friends have started using the app.
“I couldn’t ask for more. Easy Taxi really changed my life. I always recommend people to download the app since I can promote the company and earn extra points for my raking,” Mr Charoen said.
CAUGHT OFFLINE
But not everyone is pleased.
“I can’t even make enough money because there are too many taxis in Bangkok,” said Chayaporn Seesuk, who prefers the more traditional method of collecting passengers from the curb.
“I have to pay a 1,000 baht car rental fee per day plus gas, but I only make 500–800 baht per day. I rely on flat fees from foreigners sometimes, but I always end up having problems with them as soon as I give them the price at 300-500 baht per trip.
“Now that there are new ways to take a taxi, what choice do I have left to earn a living?”
Spectrum contacted the DLT to ask about the legality of taxi service applications. One officer, who preferred to remain anonymous, said Easy Taxi and Grab Taxi are both compliant with DLT regulations.
“They are still using regular taxis to operate and all of them must have licences to drive the taxi,” the source said. “The only thing that is against the law is the fact that they operate a phone [or tablet] while driving.
“However, Uber breaks every law we have,” the source added. “Uber operates a taxi service using unauthorised vehicles with black [non-commercial] licence plates. All cars that operate as taxis must have yellow plates.
“They also set up their own pricing structure, which is against the law. We are trying to contact the company but they are in Hong Kong and not available for discussion.”
When Spectrum asked Mr Brown about the issue, before Friday's confirmation from the DLT that Uber was illegal, he said only that “in Thailand, Uber partners with licensed limousine/rental car companies. Only the best and most professional drivers can become a partner after passing a stringent background check and meeting our other requirements.
“They must be of minimum driving age, have a valid driver’s licence with a clean driving history and no criminal record,” he added.
NOT SO FAST
Bangkok Taxi Cooperative manager Chaiya Vijitlakgarn told Spectrum it would be some time before smartphone apps would overtake traditional ways of hailing a taxi.
“When comparing the volume of bookings made through call centres with the apps, call centres still have a lot more people using them,” Mr Chaiya said. “The younger taxi drivers and customers are now using smartphones to call a taxi, but there are still a lot of uncles and aunties who have to rely on us.”
Mr Chaiya also said that the walkie-talkies used by drivers to contact the call centre might seem outdated, but they still form the backbone of the booking system.
“The application is convenient and easy for those who know how to use it, but the majority of taxi drivers are not tech savvy,” he said.
“I believe the taxi service applications will become the new norm, but not any time soon.”
REWARDING LOYALTY
As the app developers try to build their network of drivers, they are also offering incentives which can offer a significant boost to drivers’ earnings.
“We have loyalty programmes for drivers that use the app a lot,” said Mr Vee from Grab Taxi.
“They can reach VIP or Super VIP level, which entitles them to extra weekly bonuses. We give this to them as a benefit, along with health insurance and scholarship incentives [for high-ranking drivers].”
Easy Taxi provides its drivers with a free English-language training course, as well as putting them through a first aid course.
“We have also become a hub for all drivers to get together. Our taxi drivers usually meet on a regular basis for a meal together. We also hold football matches for them as a bonding activity. Easy Taxi becomes more like family for them,” Mr Nattapak said. n