The digital revolution is making a big impact on transport, from smart bus stops with real-time tracking, to satnavs, to apps for taxis and train times and tickets. The interconnectivity offered by the internet and mobile phone technology has radically altered the information available for us when we travel. These developments have not been without controversy or disruption. This chapter will explore some of the major innovations that are transforming urban travel by harnessing the power of the internet to match demand to supply by means of “digital platforms”. These are revolutionizing many areas of our lives, most notably by making possible online shopping. I focus here on the way that this innovative technology has disrupted and transformed the taxi market in many cities.

Taxis and apps

The best-known example of a digital platform for transport is the Uber smartphone app, which has stimulated considerable controversy. The app connects users and taxi drivers transparently. Users know in advance the approximate price of the journey, see the progress of the taxi as it approaches the rendezvous, know the name of the driver and the number of the vehicle, pay through the app, rate the driver after the trip and receive a follow-up email recording trip details. The success of the company is mainly because the app provides a more efficient and effective way of matching the demand from travellers with the supply of vehicles: more effective than trying to wave down a regular taxi in the street or summoning a vehicle by a phone call.

A word about terminology. I use the term “taxi” broadly to cover all types of car with a driver where each trip is paid for individually, while recognizing that a range of more restricted usages is also in use. A traditional distinction is between licensed taxis equipped with a meter that regulates the fares charged and private hire vehicles without a meter where charges are agreed for each trip. In London, for instance, the iconic black cab equipped with meter can be waved down in the street; in contrast private hire vehicles without meters, commonly known as “minicabs”, cannot legally be hailed but must be summoned by phone.