Taxi vs company car charter service, which one should you choose?
Planning trips often starts with deciding which ride to use. This article compares how higher-quality on-demand driving services with representative cars differ from traditional taxi services. And most importantly, trying to find out which one would best suit your travel needs.
What do I mean by the on-demand driving service performed with representative cars?
Around the world, business travelers are talking about so-called "chauffeur" services, which are an alternative to local taxi services.
In terms of taxi traffic, 2018 has been a monopoly in Finland, after which the coronavirus calmed business life for a few years, so higher-quality on-demand services have so far not been created in the taxi market. I could see that in the future, to an increasing extent, charter driving services performed with agency cars will increase on the market.
The basic differences between a taxi and a representative car service
At first glance, taxis and chauffeur services may seem the same. Both services have someone driving you from A to B. However, there are clear differences that set the two services apart:
Taxis can typically be found on the side of the street or can be ordered via an app or by phone through taxi centers, while a representative car is ordered in advance for a specific time and purpose, and cannot be found queuing at a taxi stand. Agency car operators have their own applications and order platforms similar to taxis.
Taxi pricing is based on a meter and the charge is usually determined by the departure fee, the distance traveled and the time spent, in addition to that, in some cases certain additional fees apply, such as a pre-order fee. In addition, the applicable departure fee, mileage and time charges usually vary by time of day and day, prices are more expensive early in the morning, in the evening and on holidays.
Charter driving services often operate on one-way journeys at a fixed, pre-agreed price. The price is not affected by traffic jams, unlike in taxi services, where the meter calculates the distance and the time spent on it. For this reason, when driving on demand, the aim is usually to choose the most reasonable route, while in the taxi service, the aim is always to take the shortest route. However, nowadays it is also possible to choose fixed-price taxis.
It is also possible for agency car operators to reserve a car for a longer period of time for the customer's use, in which case hourly pricing is applied.
And of course the most obvious difference is in the vehicles. Company cars are typically business or luxury class cars that offer a more luxurious and comfortable ride than a typical taxi.
For different uses
The taxi service is typically used for sudden departures and is thought of as an easy way to make short-term transfers. You jump into a taxi from the side of the street or book it through an app, you get in and a stranger driver takes you to your destination, you pay for the ride, and you probably won't see the same driver again. From a taxi entrepreneur's point of view, the operation is often based on having as many customers as possible in the car during the day.
On the side of agency car services, the aim is not to race against time towards the next customer, but to prepare well for the orders on the calendar. By good preparation, I mean that the car is kept clean, the driving route is planned according to rush hour and we make sure that we are at the customer's place on time. So nothing special, just basic things. A driver who takes care of the basics well will give you as a customer a more personal experience and you will be able to relax during the trip.
Differences in ordering
A taxi is ordered by calling or using an app from one of the order brokerage companies that arrange taxis. A car will be sent to you from the system according to the company's operating procedures. In general, taxis use a system where the driver who has been in the vicinity the longest without a ride is primarily "earmarked" for you, if there are no free cars nearby, it is expected that one will appear.
In on-demand driving services, you order a specific driver to pick you up at a specific time. The service is therefore more individual and you know from the beginning what you are ordering.
Pricing
In general, taxis are considered a more affordable option for short city trips. The price is determined by the meter, meaning you pay for what you use.
While booking a private chauffeur service for short trips can be more expensive, it is important to note that when you book a representative car service, you are not only paying for transportation – you are also paying for the more pleasant travel experience that comes with it, i.e. security, comfort and a more personalized service.
If we forget about the shortest journeys of a few kilometers, the company car service is quite competitive in terms of prices and price-quality ratio and offers better value for your money compared to taxis.
The price of a private chauffeur service can also be justified if you need longer transports or special events where making an impression is important.
Privacy
One of the biggest advantages of a ride-hailing service is the level of privacy and personalization it offers. In a taxi ride, the driver may tap on his devices during the trip and search for the next gig, while with a private charter ride, the vehicle is reserved for you during the trip and the driver is not in the same hurry for the next customer.
This enables confidential conversations or your own peace of mind. In addition, private chauffeur services can be tailored exactly to your needs - whether it's multiple stops throughout the day or waiting at meetings or events.
Worth noting: The Taxi Act was changed in 2018 and the driver's duty of confidentiality was removed from it. I claim that the duty of confidentiality is still applied in on-demand driving services, while in some taxis I would not be so sure about it.
Conveyance – General appearance and cleanliness
Here again there is a clear difference, where taxis try to be on the road 24/7 and the number of customers being transported is what decides if the representative cars are on the road when you order from them. Free time is used, for example, to keep the car clean.
Otherwise, according to the legislation, a taxi today can be almost any four-wheeled vehicle, whereas the cars operating on demand are focused on high-quality vehicles from long-standing brands, which have plenty of space and the package is built around the customer's travel comfort.
Reachability – a sudden departure or a planned entity?
There is also a big difference in the ways of doing things here. Taxis are where they happen to be freed from the previous ride, while the on-demand service is ordered separately to pick you up wherever you are.
Of course, most taxi operators offer a pre-order option, but to my regret I have to say that the taxis are there where they leave the previous passenger. Even if, for example, you preorder a taxi to Porvoo for Monday morning at 5:00 a.m. when you're on your way to the airport, it's not impossible that there won't be a free car nearby.
Drive-on-demand services work differently in that when you order, you are assigned the car of your choice within the operator, which is in the yard when the clock strikes 5:00. However, it must be said that ride-on-demand services operate with a significantly smaller number of cars than taxi operators, so sometimes there are no cars available. Of course, it will be told to you when you order and not in the morning when you should already be leaving.
There are also similarities, such as licensing issues
In Finland, when you transport people in private cars for money, you need a taxi license and with it comes other obligations, such as increased professional transport insurance, which ensures your safety. Every on-demand driving service performed with representative cars also has the relevant permits, so taxis and on-demand driving services do not differ in this respect.
Summary: Taxi vs agency car charter service - which one is better?
In summary, while both taxis and private car services will get you from A to B, they meet different needs and expectations. Taxis are ideal for quick city trips when cost-effectiveness is paramount. On the other hand, if a higher level of experience, privacy and personal service are at the top of your list of requirements – choosing a private charter driving service would be the right way to go.
Understanding these differences can help you make the right choice for your transportation needs. So the next time you need a ride, think about what is more important to you – a fast, affordable trip or a more pleasant and personal trip? The decision is yours!