AI won’t be enough: Why the taxi and PHV industry’s future advantage could still come down to people and the human touch
- Perry Richardson
- 2 minutes ago
- 3 min read
Artificial intelligence is rapidly becoming embedded across the taxi and private hire vehicle (PHV) industry. From automated dispatch systems and dynamic pricing to customer support chatbots, driver onboarding tools and demand forecasting, operators are increasingly adopting AI-powered solutions to improve efficiency and reduce costs.
Yet as AI becomes more accessible and widely adopted, a growing question emerges: if every operator has access to similar technology, what will actually differentiate one business from another?
That debate has been raised in a wider discussion about AI adoption by customer success executive Christine Barnett, who drew parallels between today’s AI market and the early years of Uber’s rapid expansion. Reflecting on a company she previously worked for that was later acquired by Uber, Barnett argued that markets often move through a phase where heavily subsidised technology becomes widely available before eventually becoming standard infrastructure.
Her assessment suggests that AI may ultimately become less of a competitive advantage and more of a baseline business requirement. Once that happens, operators across the taxi and PHV sector could find themselves using remarkably similar tools, systems and automations.
As artificial intelligence becomes standard across the transport sector, operators may find that customer trust, driver relationships and service quality remain the factors that separate winners from the rest.
The observation is particularly relevant for transport operators. Many of the AI products currently entering the market are designed to solve the same challenges: matching supply and demand, improving customer communications, predicting busy periods, reducing administrative workloads and supporting driver recruitment.
Over time, those capabilities may become commonplace. Smaller operators that today lack advanced technology could eventually access the same AI-powered services as larger rivals through third-party software providers. The result could be a levelling of the technological playing field.
If that scenario develops, the competitive focus may shift back towards areas that technology struggles to replicate.
Customer trust remains a major factor in any transport service. Passengers continue to value reliability and consistency. While AI can help optimise operations, it cannot replace the reassurance provided by professional drivers and operators with strong local reputations.
Driver relationships may become even more important. As recruitment and retention challenges continue across parts of the industry, operators that build stronger relationships with drivers could hold an advantage over competitors relying solely on automated systems. Drivers often remain loyal to businesses that provide support, fair treatment and responsive communication.
The black cab sector offers a great example. Despite increasing digitalisation and app-based bookings, many passengers continue to choose licensed taxi drivers because of their knowledge, professionalism and ability to provide a trusted service. The technology used to secure the booking is often secondary to the experience delivered once the passenger enters the vehicle.
Barnett also highlighted a view that “when all companies have the same AI tooling, the only differentiator will be people”. While perhaps simplified, the statement reflects a growing belief that technology alone will not create a lasting competitive barrier once adoption becomes widespread.
For taxi and PHV operators, the next few years may therefore be less about whether they adopt AI and more about how they combine it with human judgement. Companies that successfully blend automation with strong leadership, customer service, driver engagement and operational expertise could be best placed to succeed.
AI is likely to become an essential tool across the industry. But if every operator and driver eventually gains access to similar technology, it may be the human touch, rather than the algorithm, that passengers remember and businesses are ultimately judged by.
