By Natasha Sinha '18
Several apps have tried and failed to compete with Uber. Arro, the recently launched taxi-hailing app, is the taxi industry’s last hope to survive. Uber has had detrimental effects on the taxi industry, especially in New York City, as the value of a taxi medallion, the city-issued license to operate taxis, has dropped to about $700,000 from a peak of $1.3 million.Where Arro sees its competitive advantage over Uber is its integration with the taxi. While other apps have failed, what sets Arro apart is its partnership with Long Island City-based Creative Mobile Technologies (CMT), which controls the video screens and payment systems in about half of New York City’s taxis. Arro users are able to hail cabs through messages sent directly to drivers through CMT’s data terminals in the front of cabs. Uber drivers, on the other hand, retrieve requests through smartphones attached to their dashboards. Similar to Uber, a nearby taxi driver is sent the passenger’s name and pickup address when a user requests a cab. The passenger is sent the driver’s name and ID number so the car can be identified quickly. Credit card information is saved in the app, allowing users to pay seamlessly.Several other features prove to be advantageous in Arro, the most notable being no surge pricing. Uber tends to spike up fares during periods of high demand, such as the holidays. Arro, on the other hand, will always be just the price on the meter. Furthermore, Arro is in the process of developing a partnership with VeriFone systems, a firm that controls the payment systems for the other half of New York City’s taxis. Arro hopes that solidifying a partnership with VeriFone systems will give them a competitive edge over Uber as the primary e-hail service for taxis.Critics of Arro believe that Uber still prevails. Arro’s founders claim their system is more appealing because it is integrated within the taxi as opposed to working entirely through a smartphone system, like in Uber. However, critics argue that this is largely insignificant – what is more important is how the taxis are hailed and how customers pay, and both Arro and Uber will be using the same seamless method to achieve both of these. Uber simply has a larger customer reach, with over 20,000 cars used and $5 billion in funding. For another company to surpass Uber will take an idea truly exceptional. Sources:https://www.goarro.com/http://www.nytimes.com/2015/09/13/nyregion/arro-a-ride-hailing-app-connects-directly-with-yellow-taxis.html?_r=0http://www.crainsnewyork.com/article/20150827/BLOGS04/150829899/meet-the-taxi-industrys-last-best-hope-to-survive-uber-agehttp://www.wsj.com/articles/uber-vs-the-new-taxi-hailing-apps-1444412846?alg=yPhoto:http://cdn.psfk.com/wp-content/uploads/2015/09/Screen-Shot-2015-09-03-at-5.32.55-PM.png
