One of the goals of the Israeli start-up, GetTaxi Ltd., was not only to change the way passengers order taxis, but also the way they perceive the drivers. If once the drivers were perceived negatively, it seems that GetTaxi succeeded in changing something in their image, and has shown that they are a little more human than they were once perceived. However, while this was happening, it seems that at GetTaxi they forgot that they too need to treat their drivers appropriately.
A close look at the company’s recent activities reveals aggressive conduct that does not leave many options for its 1,500 drivers This includes policies that harm the drivers’short-term income, and the purchasing of supplementary equipment using drivers’ money without prior consultation.
The last blow-up between the company and the drivers was earlier this month, when the company decided to cancel the NIS 5.20 reservation fee. This is a fee that has existed for years in the market, but is not based on any law or Transportation Ministry policy that states that this fee should be applied to reservations. GetTaxi attempted to appeal to passengers and reduce the fee, but without consulting drivers.
One of the drivers, “Alef,” who asked to remain unnamed, said to “Globes” that “If it was important to them to appeal to passengers, then they didn’t have to dump it all on the drivers, they could have done 50%. They could have negotiated with us.”
Instead, the GetTaxi cab meters announced without warning one day, the cancellation of the reservation fee to the drivers, without giving drivers any choice in the matter. The drivers said that anyone who chose not to accept the policy could no longer use the GetTaxi dispatching service, and could not receive fares.
Some of the drivers continued to charge the fee, but the company promised to refund its customers, and rushed to crack down on those drivers, some of whom were then forced to leave the company. According to Alef, “as soon as they know who charged the fee, they turn off his unit.”
A loss of NIS 780 per month
Though at GetTaxi they are trying to persuade drivers that the cancellation of the fee will attract more passengers, and more work and income for the drivers, others look at the cash-in-hand and see it as a loss of income. Alef explained that the average driver has about 150 fares per month. “Multiply that by NIS 5.20 and you get a loss of the NIS 780 per month.”
Another driver explains that “The average fare on GetTaxi is about NIS 27. Now deduct the NIS 5.20 reservation fee from that, VAT, dispatching fees to GetTaxi, gas, and maintenance, and the driver is left with less than NIS 10 for a single fare.”
One of these drivers recently filed a complaint against the company through the law offices of Adv. Eddie Blitshtein. “This is not a process that was carried out innocently. They did not notify the drivers in advance, and they did not give the drivers time to switch to another company,” he says.
The company hurried to launch a PR campaign on Facebook and via other channels to advertise the move, despite the fact that quite a few drivers were still bitter about it.
The drivers’ feelings on the matter were expressed in a recent decision to launch a work-to-rule, where some drivers disconnected their GetTaxi devices for a limited time, in order to reduce the number of available taxis the company has to offer. The drivers recently decided to meet, in order to protest the company’s actions, along with the Blitshtein. This was complicated in and of itself, as GetTaxi is a virtual station, and the drivers do not know each other.
Some of the drivers decided to set up a protest group on Facebook, but here, too, GetTaxi had the upper hand.
According to Blitshtein, GetTaxi approached Facebook - on which it is a major advertiser, by Israeli standards - and asked that group page be removed. Facebook obliged.
Alef says, “They fired me because I protested and I opposed them on Facebook. Their Drivers’ Department called me and said: ‘You are no longer entitled to work for us. Come in on Sunday to return your GetTaxi unit.’”
They charged NIS 250 for shirts
Reservation fees were the straw that broke the camel’s back, but it is not the only issue about which taxi drivers are discontent. A few months ago, they deducted NIS 250 all drivers’ pay, with no prior notice. When the drivers inquired about the deduction, they were told it was for five polo shirts with GetTaxi logos.
GetTaxi wanted the drivers to wear the shirts, but lacking a formal employer-employee relationship, it could not force them to do so. Thus, they deducted the amount from the drivers’ pay and refused to return it, without consulting them, without asking how many shirts each driver needs, and all this at a high-price per shirt - relative to the production cost of such a shirt.
A similar incident, though a less expensive one, took place recently when the company charged each driver NIS 39 for a split smartphone charger. The company wanted the drivers to offer passengers the chance to charge their phones during the ride, despite the fact that drivers have car chargers, and despite the fact that this is a high price relative to the prices of splitters and chargers in stores and online.
NIS 130 for a walkie-talkie phone
GetTaxi’s questionable conduct vis a vis its workers does not end there. According to Blitshtein, the company decided to charge each driver a monthly fee of NIS 130 for a walkie-talkie phone that was to be installed in the taxi, and would enable inter-organizational communication.
The intention was for drivers to be able to report technical problems with the GetTaxi billing system, or to speak with the company’s customer service hotline. However, according to Blitshtein, as more drivers joined, it became increasingly hard to reach the dispatchers.
“Moreover, today there are unlimited cellular packages that cost 50 or 100 shekels, so why do they charge more than this? And for inter-organizational calls only?”
As reported by "Globes" earlier this week, GetTaxi Ltd. has also started taking 50% of tips that drivers take from credit cards.
”We’re not forcing anyone to stay”
GetTaxi ignored the issues raised in this article, and said: “GetTaxi initiated a revolution in the taxi industry in Israel, both in terms of the passengers’ experience, and in terms of the treatment of the drivers, who still enjoy the lowest dispatching rates in the country, alongside the highest number of fares. GetTaxi is a private company that does not force anyone to stay, and drivers who are dissatisfied with the way they are treated are welcome to leave, as there is still very high demand among drivers who wish to join the station.”
Published by Globes [online], Israel business news - www.globes-online.com - on October 28, 2013
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