Cab apps: will they save you money?

From Maaxi and Uber to Hailo and Kabbee, we look at how the different cab apps work.

Taxis and minicabs in the capital are big business, with a number of smartphone apps now getting in on the act.

Maaxi is the latest one – it matches up strangers travelling the same way and allows them to share a cab and split the bill.

It’s set to rival Uber, Hailo, Kabbee and Get Taxi, which all pledge to make cab journeys easier, cheaper, or both.

We’ve taken a look at what the different cab apps offer.

The rules

London has a two-tier system when it comes to cabs and taxis. It basically splits black cab drivers and private hire vehicles (PHV).

Black cab drivers need to learn and pass The Knowledge. The Knowledge is an in-depth test of London streets and landmarks and means a cab driver won’t need to rely on maps or sat-nav and will intuitively know the quickest way from A to B.

Having The Knowledge gives black cabbies the exclusive right to be flagged down on the street and “meter” journeys.

PHVs (or minicabs) have to be booked in advance and will give passengers a fixed price ahead of the journey. They’re generally cheaper than black cabs but you run the risk that the driver might not know where he or she is going and will rely on maps, sat-nav or passenger directions to reach the destination.

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Maaxi

Maaxi’s the new kid on the block and promises to help London black cab drivers compete against cheaper pick-up services.

Maaxi is designed to match up to five passengers travelling the same way, so that they can share a ride and split the cost. It can also be used to book solo journeys. It’s for black cabs only and is backed by the Licensed Taxi Drivers Association.

A key attraction for drivers is they will earn more money per ride if they carry more passengers than they would do normally. Usually it doesn’t matter how many people you cram into a black cab – the fare’s the same.

Using Maaxi, the driver charges each person less than the meter fare but when all the fares are added together he or she gets more: a win-win.

The firm makes money by taking a cut of the fee for shared rides, but not those of passengers travelling alone.

Uber

Uber connects passengers with private (not black cab) drivers located nearby and who can take you where you want to go.

Once you’ve booked a journey you’ll see a photo of your driver, their name, and a contact phone number. You’ll also receive an estimate of the cost. You can see exactly where they are via GPS and they can also see your exact location.

The app works out the cost of the journey and payments are made via the app which has users’ credit card details. Uber makes its money by taking a cut of drivers’ fares. Controversially Uber operates “surge pricing” – upping the cost of journeys during busy periods.

While drivers are vetted, they don’t have to pass a test, unlike black cabbies. Part of the so-called sharing economy, Uber enables anyone who owns a decent car – and can pass the regulatory tests – to make money as a minicab driver.

Uber has met with resistance from London’s black cab drivers as the say it offers metered fares – which PHVs are not allowed to offer – yet Uber drivers don’t have to pay the same fees, permits or licences that black cab drivers do.

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Other apps

Hailo was founded by three London cabbies and allows people to hail a cab through their smartphone. Initially exclusively for black cabs, it has since opened up its service to PHVs – much to black cab drivers’ disgust. Payments are made by credit card details uploaded to the app.

Get Taxi works in a similar way to Hailo but is for black cabs only. Passengers can pay for taxi rides directly from the app, tip the driver and have receipts sent directly to email.

Kabbee allows users to compare the cost of more than 70 London minicab companies. It also shows the closest companies, user rating and reliability. There is also the option to add a via point to pick up a friend, and choose between various classes of vehicle.

Have you used a cab app? How was your experience? Let us know below.

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