Taxi or Uber – what is the difference between Uber and a taxi?
- Damian Brzeski
- Aug 14
- 11 min read
Is Uber simply a modern taxi, or something entirely different? While the differences have seemingly disappeared—today, both Uber and traditional taxi drivers require a license and a "rooster" on the roof—two completely different games are still playing behind the scenes. What are the hidden mechanisms that influence your experience as a passenger?
What does "algorithm vs. dispatcher" mean, and why AI could upend this market? You'll find the answers in the analysis below—and we guarantee you'll never look at Uber or taxis the same way again.
What is the difference between Uber and a taxi?
The Polish urban passenger transport market has entered a new, more complex phase. The old, tumultuous "taxi drivers versus lefties" conflicts have given way to a new battleground. Today, it is no longer defined by legality, but by operational efficiency, user experience, and brand perception .
In theory, the regulations known as "lex Uber" have made traditional taxi services and ride-hailing apps (like Uber, Bolt, or FreeNow) legally identical on paper. Both involve licensed drivers, marked vehicles, and a common set of rules.
The following text will show you, however, that despite this legal convergence, both services remain fundamentally different ecosystems.
In this article, we will conduct a comprehensive study to analyze these differences, breaking down their business models, pricing strategies, driver realities, and distinct target groups.
The goal is to answer a key question: what really distinguishes a taxi from Uber in 2024?
Equal on Paper: How "lex Uber" Changed the Rules of the Taxi Game
This key legislative change, which fully entered into force on June 17, 2024, aimed to bring all market participants under a single regulatory umbrella. This ended a long-standing dispute between taxi companies and app-based ride-hailing companies.
Legislative Hammer: A Unified Standard
The new law, with the grace of a blacksmith, imposed identical, strict requirements on all drivers providing paid passenger transport, effectively blurring formal differences.
What are the key requirements for ALL taxi drivers?
Taxi License : Every driver must have a license to perform national road transport in the scope of passenger transport by taxi.
Polish Driving License: As of June 17, 2024, a Polish driving license will be mandatory. This change is intended to ensure that driver data is verifiable in Polish police systems.
Verification and criminal record: All drivers must undergo verification and present a certificate of no criminal record for crimes against life and health, sexual freedom and decency.
Medical and psychological examinations: Mandatory medical and psychological examinations are required to confirm fitness to practice. These examinations must be repeated every five years until the age of 60, and every 30 months thereafter.
Vehicle Signage: Cars must be properly marked as taxis, which includes a roof light and local city signage.
Market Reaction: Short-Term Shock and the Power of the Free Market
The official narrative, eagerly perpetuated by the platforms themselves, speaks of shock, a shrinking market, and an inevitable price increase. Indeed, immediately after the regulations were introduced, the data looked dramatic: some drivers were lost, accounts were blocked, and there were hectic reshuffles.
However, anyone who observes the market not only through the prism of messages convenient for corporations sees a completely different, fascinating picture.
Economics, especially in such a dynamic sector, abhors a vacuum. I'd venture to say that the "catastrophe" was momentary and ultimately extremely profitable for the entire ecosystem. How is this possible?
Into the void left by drivers who failed to meet the new formal requirements, a new, even larger wave of economic migrants has surged in. This is a fact that platforms are particularly reluctant to discuss.
It is much more convenient to operate with data from a short transition period than to admit that the business model not only survived but even became stronger.
Based on my own empirical experience and dozens of conversations with passengers, we can confidently say: today, finding a Polish driver in Uber or Bolt is more difficult than ever before.
Instead of discouraging, the temporary rate increase acted as a powerful magnet. It attracted thousands of new people to the profession, ready to start working immediately. And who benefited most from this? Not the apps themselves, but their closest partners.
Fleet and car rental companies proved to be the true beneficiaries of this change . For them, the influx of new driver candidates, needing cars and administrative support, became a veritable goldmine.
And what about the prices we were threatened with? Yes, they spiked for a moment, but the market quickly corrected them. Today, after the situation stabilized, travel costs have returned to levels that can only be described as cosmetically higher.
Moreover, given the cumulative inflation of recent years, it could be argued that the real cost to passengers hasn't increased significantly. The market has adjusted itself, proving its incredible flexibility.
Two models of commercial passenger transport, two worlds: The anatomy of a taxi service
Despite legal unification, the way traditional taxis and app-based services operate remains radically different. These differences stem from fundamentally different operating models.
Traditional model: corporation and dispatcher
The heart of the traditional taxi service, which many of us still remember well, is a human being – the dispatcher at the headquarters.
This model relies on direct, interpersonal interaction : phone orders, organized stops, and the ability to hail a vehicle "off the street." Drivers are often independent entrepreneurs who pay the corporation a monthly subscription for access to the brand and orders.
For years, however, we've been led to believe that excluding human contact and interacting solely with apps is the height of modernity and convenience. Have you ever wondered why this is actually the case? Let me explain.
The real reason is much more prosaic and boils down to one word: optimization . Imagine a global platform that operates in dozens of countries and whose drivers come from all over the world.
An Indian or Pakistani from overseas can easily serve a customer in the US or the UK, often with better English than mine. But the same employee won't be able to serve a customer in Poland, the Czech Republic, or Japan.
Employing thousands of operators in dozens of call centers, fluent in every language, is simply economic absurdity.
Offloading the entire operating logic to an algorithm is unrivaled cheaper. What's being sold as innovation is, in fact, brutal cost optimization.
Of course, for this to work, it took some carefully planned social engineering on us, the users. Humans are social animals—we need interaction, whether we're extroverts or introverts. Weeding out this instinct is incredibly difficult.
That's why the app had to be not only intuitive, but also offer something more – something that an operator cannot provide: live vehicle tracking, a price guarantee, a quiet ride without conversation.
An app doesn't have to be perfect. It just has to be good enough . And I don't use the word "good enough" haphazardly. It has to be simple enough that you can use it without any problems, and it just works.
Because the truth is that the synergy between a skilled hotline operator who knows the city inside out and an experienced, local taxi driver will almost always result in a higher-quality service.
They will do it much better than a driver who just arrived in the country yesterday and is learning the city's topography with the help of navigation.
Platform Model: Algorithm and Fleet Partner
In the Uber or Bolt models, the algorithm is king. It connects passengers with drivers, sets prices, and maps routes with minimal human intervention. The most important structural difference, however, is the key role of the "fleet partner."
Partners are independent companies that handle all the administrative burden: driver registration, accounting, and tax returns, and often rent fully equipped vehicles. In return, they charge drivers a weekly fee or commission.
The partner absorbs the administrative complexity and legal risk , allowing the technology platform to maintain its global model based on the slogan "we are a technology company, not a transportation company."
Passenger Wallet: Price and Cost Analysis
For most passengers, price is the key factor. Here, the two models represent completely different philosophies.
Taxi: adjustable transparency
Yes, you see correctly, today this is an argument for a taxi, not an app. Traditional taxi pricing is regulated at the city level and is based on a transparent tariff system . Its main components are:
Initial fee: Fixed amount for "slamming the door", usually 8-12 PLN.
Kilometer rates: Different rates per kilometer (day, night/holiday, out of town).
Taximeter: A physical, legal device that adds up the fare for distance traveled and for the time spent standing or driving in a traffic jam.
As a result, the passenger does not know the exact final price at the time of commencement of the journey.
Uber/Bolt: Algorithm Convenience and the Multiplier Trap
Platforms revolutionized the market by introducing upfront pricing . This is their biggest advantage – the app displays the final price before confirming the order.
However, this price is the result of dynamic pricing . During rush hours, bad weather, or major events, a surge pricing factor kicks in, which can drastically increase the cost of a ride, making it significantly more expensive than a taxi.
Market after the battle: who won and what will the AI revolution bring?
After years of turbulent tug-of-war, the transport market in Poland has finally reached a certain state of unstable equilibrium.
Application platforms, thanks to gigantic investments in marketing and social changes, have become permanently embedded in our consciousness.
The brutal market verification is already behind us – what was supposed to fail has already failed, and these were mainly the weakest, low-cost taxi companies.
From the customer's perspective, choice seems simpler and clearer than ever. A clear segmentation has emerged:
When you want it cheap and fast, you choose an app. For short, everyday trips—to university, shopping—instead of the tram. In this segment, Uber and Bolt, with their scale and optimization, are unrivaled.
When reliability and quality are key, the traditional taxi often wins. Whether it's for premium rides, airport transfers with heavy luggage, or the need to book a van, this is a niche where reliability and professionalism still matter.
Platforms have also gained a powerful foothold in the business world, and this is for one simple reason: globalization . Using a single app, you can order a ride in almost any major city in the world and receive a single, consolidated invoice at the end of the month. This level of convenience and unification is unmatched by any local corporation.
Does this mean the game is dead? Not necessarily. And here we come to something that could be a real light at the end of the taxi tunnel . I'm talking about the quiet revolution that's already happening – the AI revolution, and specifically the arrival of Agents.
Think of them as your personal virtual assistant or concierge, built into Siri, Google Assistant, or ChatGPT.
Instead of opening the Uber app, you can simply say to your phone, watch, or even smart glasses: "Give me a ride to the airport for 6:00 PM, I need a good price and room for two suitcases."
And your agent, knowing your preferences, will scan all available options in a split second – not only Uber and Bolt, but also the offer of the local taxi company – and choose the objectively best one.
This " agentization " of the internet could unexpectedly level the playing field. Suddenly, the best local company—one that's cheaper, has better cars, and has higher ratings—will be automatically recommended by your assistant. The apps' monopoly on being the first choice will be broken.
There's one catch, however: The only companies that will benefit from this change are those technologically ready. Those with modern IT systems and open APIs that allow AI agents to "see" their offerings and communicate with their systems.
I see a huge opportunity here. But if the industry, sometimes known for its inertia, doesn't step up and invest in technology, we can be sure of one thing: global giants, with their vast resources, will integrate with agents first and shut the game down for good.
Special cases: children and animals on board
In everyday use, situations arise that expose critical legal differences.
Children: the seat makes the key difference
In a taxi: Polish law exempts licensed taxis from the obligation to transport children in a child seat car.
For Uber/Bolt: This exemption does not apply . The responsibility for providing a child seat for a child under 150 cm tall rests entirely with the passenger . The driver has the right to refuse the ride, and the passenger may be fined.
Animals: Dedicated Service vs. Goodwill
On Uber/Bolt: Uber offers a dedicated "Uber Pets" service for a slightly higher fee.
In a taxi: Approval for transportation depends on the driver's individual decision or corporate policy. It's crucial to inform the dispatcher of this when ordering.
In both cases, drivers are legally obligated to transport a passenger with a certified assistance dog.
So what is the difference between a taxi today and a "taxi" from an app?
While "lex Uber" has dressed everyone in the same uniform—the same licenses and "roof lights"—underneath, two completely different hearts still beat. Market analysis aside, let's boil it down to the fundamental differences you experience as a passenger:
The brains of the operation: In a traditional taxi, this is still a human – a dispatcher with whom you can talk and refine your request. The app is governed by an algorithm whose primary goal is global optimization.
Business Model: A taxi is most often a local service , provided by a local entrepreneur connected to the city. Uber or Bolt are global technology platforms for which the driver and fleet partner are merely local subcontractors.
Pricing Philosophy: The taxi offers regulated, transparent fares , but the final price is uncertain (the taximeter ticks). The app provides an upfront price guarantee , but the price is the result of an opaque algorithm and is prone to sudden price spikes (so-called multipliers).
Quality and character of service: A taxi offers the potential for a premium service , often based on years of experience and the driver's excellent knowledge of the city's topography. Apps offer standardized convenience , where local expertise is essentially replaced by GPS navigation.
Main purpose: Simply put, you use an app when you want something cheap and practical . You use a traditional taxi when reliability, premium quality, or special needs are a priority. Interestingly, this isn't a Polish specificity. A very similar, even heightened, model is observed in Japan. There, excellent public transportation or apps are used for common, affordable travel, while a traditional taxi is a luxury service—expensive, but provided at the absolutely highest, impeccable standard.
Ultimately, the choice comes down to a simple question: do you need a cheap and simple way to get around, or do you want a complete, often more reliable and personalized transportation service? Despite the same roof markings, these are still two different worlds.
