The Rise of Ride-Sharing Services and Fluctuating Prices
Transportation – Taxi or VTC? Uber or Heetch? Snapcar or Taxify? Not long ago, these questions were meaningless. Regardless of the journey, time of day or night, there were only taxis with regulated fares.
Today, not only has the number of players exploded in the wake of Uber, but their prices are now unpredictable, fluctuating based on real-time demand. The bill can easily double, leading to very unpleasant surprises.
That’s not all. As our exclusive comparison with Eurecab reveals for the first time, the implementation of a provision from the Grandguillaume law six months ago, on December 29th, has resulted in a significant increase in prices and wait times, causing thousands of drivers to cease their activities.
Voted on at the end of 2016, this law prohibits Loti drivers from working for major platforms such as Uber, Chauffeur Privé, or LeCab since the end of December. They had one year to comply, but apparently, the equivalence systems did not fulfill their role.
In partnership with the VTC price comparison website Eurecab, LeHuffPost compared 10 taxi and VTC offers over the course of a week (from June 21st to 27th), conducting as many simulations as there were scenarios, at the specified times.
Most importantly, we were able to compare the results with our test from last November, before the Grandguillaume law came into effect. Five out of the seven simulated trips followed the same route, at the same time, on the same day of the week. Although the last two trips couldn’t be replicated identically, they still offer valuable insights.
Differences of up to 172% in Prices for the Same Trip
Whether it’s a reservation to the airport, a late-night return from a party, off-peak hour rides, or trips between Paris and the suburbs, Eurecab conducted 70 simulations. In addition to taxis and major VTC players, Eurecab also compared offers from independent professional drivers and Heetch, a specialist in Paris-suburb rides, available from 8 PM to 6 AM and on weekends.
The price differences observed are always significant, ranging from 58% to 172% between the cheapest and the most expensive fares. However, it’s important to note that these differences are rarely consistent. VTC prices fluctuate depending on supply and demand, and drivers almost always work for multiple apps simultaneously, searching for the most rewarding ride.
Here are the key findings that Théodore Monzies, co-founder of Eurecab, drew from this comparison:
1. Waiting times and prices have increased for all VTC services
Wednesday and Thursday rides now cost an average of 22% more than before the Grandguillaume law was implemented. The highest increase comes from Uber (+71%). Waiting times are longer, often exceeding 10 minutes. The regulated prices of taxis have naturally remained relatively stable.
2. Heetch, LeCab, and ChauffeurPrivé come out on top, Uber is more expensive than a taxi
Heetch was already known for its competitive rates last November, but it only operated in the evenings and on weekends, mostly in the suburbs. By expanding its hours of operation, it has gained an edge. As for the surge in Uber prices, it’s a real surprise. Previously on the podium, it is now the most expensive option (albeit marginally). “Uber’s promise is to find a driver in all circumstances, and it is generally reliable when it comes to arrival times. To fulfill this promise, attractive prices must be offered to the drivers,” explains Théodore Monzies.
Average prices for the week, in €:
3. LeCab, Snapcar, Allocab, and Taxify receive low ratings for waiting times
Fewer drivers mean longer wait times. In this regard, Snapcar and LeCab rank the lowest, with estimated waiting times of 10.3 and 12.1 minutes, respectively. It is worth noting that Taxify failed to provide an estimated waiting time twice… Not a good sign. Beyond ten minutes of waiting, the chances of no driver accepting the ride increase. For the G7, Uber, ChauffeurPrivé, and Heetch apps, the average waiting time is always less than 5 minutes.
4. Independent drivers are an interesting option for airport trips
We rarely think of these independent professionals. Often specializing in long trips, they appreciate this type of journey where they are cheaper than all VTC services, except for Heetch. They are listed on comparison websites like Eurecab.
Methodology
To simplify the comparison, we focused on offers equivalent to those of taxis or UberX. The address of LeHuffPost, located in Paris 13th arrondissement, served as the reference point. Taxify prices were adjusted to account for their temporary 50% discount. We then compared the indicated prices with those from our initial comparison published in November 2017.
- Price difference from cheapest to most expensive: +58%
The week starts early with a flight from Roissy CDG. To ensure arriving on time, it was necessary to book the day before. Independent professional drivers are well-positioned, priced at almost half the cost of G7, which is weighed down by a €7 reservation fee.
- Price difference from cheapest to most expensive: +106%
Heading to the only official fan zone in the Île-de-France region to attend this crucial match. This Paris-suburb trip is where Heetch shines, especially considering the late hour, surpassing Allocab by a wide margin.
- Price difference from most expensive to cheapest: 40%
It’s Wednesday, the kids don’t have school, so we take advantage and go for an outing at Parc de la Villette. Everyone comes out exhausted, too tired to take the metro. Hailing a taxi on the street is an interesting option; they’ll get there faster by using the bus lanes. However, ChauffeurPrivé is very competitive.
- Price difference from cheapest to most expensive: +90%
Meeting for a working breakfast at the Drugstore Publicis, at the top of the Champs Elysées. The place is nice, but the commute back to the 13th arrondissement by public transport will be long. At this off-peak hour, it is easy to find a taxi on the street, a highly competitive and fast option thanks to the bus lanes. Heetch stands out again with a ride offered at €16.
- Price difference from most expensive to cheapest: +75%
The workweek is over, colleagues decide to grab a drink in the Pigalle area. Heetch is much more advantageous for the ride back home, almost €10 cheaper than a taxi.
- Price difference from cheapest to most expensive: +172%
Bright and early, the ring road is clear, but drivers are scarce. Three apps indicate waiting times of more than 10 minutes, and prices rise rapidly. With Uber, the fare is more than twice the cost of a taxi.
- Price difference from cheapest to most expensive: +76%
A relaxed lunch at friends’ place in the suburbs, on Saint Joseph Street in Champigny-sur-Marne. Once again, Heetch offers the best price, while Snapcar reaches €30.
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