It took four months, but it appears that publicity and pressure from drivers and customers has forced GetTaxi Ltd. to make a U-turn on two decisions that adversely affected drivers: it will stop collecting half of drivers' tips paid by credit card and it will reinstate the fee for ordering a taxi.
At a press conference today, GetTaxi reinstated the fee for ordering a taxi in advance on weekends. Drivers will again be allowed to charge the fee between 3 pm on Thursday through 8 am on Saturday, beginning this weekend. In October 2013, the company abolished this longstanding NIS 5.20 fee that all Israeli taxi drivers are allowed to collect for a preordered ride, under Ministry of Transport procedures. In the case of GetTaxi, this basically means any order for a cab made via its app.
The cancellation of the fee promised lower fares for passengers, and made GetTaxi the only taxi stand to cancel the fee. GetTaxi said that the cancellation was coordinated with its drivers, but that turned out not to be the case. Drivers were furious over the reduction in their income, and their protests shut down part of GetTaxi's operations by not responding to passengers' orders for cabs. The drivers also established a Facebook group to protest the company's conduct. GetTaxi fired some drivers and sent an ultimatum to others to stop collecting the fee or get fired as well. GetTaxi claimed at the time that cancellation of the fee would increase the number of trips by the drivers, boosting their income.
GetTaxi also announced today that all tips paid by credit card via the app will go to the drivers. As "Globes" reported in late October, GetTaxi collected half of these tips, further enraging drivers. "It's absurd to present the company as withholding the tips, instead of appreciating that it absorbs the credit card clearing cost in full," said GetTaxi at the time. This practice has now ended.
GetTaxi said that it will continue to absorb the credit card clearing cost in full, at a cost of hundreds of thousands of shekels a month. It says that 60% of passengers through GetTaxi pay by credit card.
Published by Globes [online], Israel business news - www.globes-online.com - on January 29, 2014
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