“The guy who took us across town today on Bolt runs all three apps, so he can be booked through any of these channels. I gather that most ride-hailing drivers are multi-homing across all these three apps.
“This means you are unlikely to wait longer or get a different car or driver if you use Bolt or Didi – fair chance it’ll be exactly the same service.
“The reason you should switch is to be kind to your driver. They all prefer Bolt and Didi because the tax rates are lower. Uber takes 28% of the fare, against 20% for Bolt and Didi.
“Tell your friends.”
Small’s post, made on Monday, had 475 reactions and 59 comments by yesterday morning.
Many weighed in with their opinions on Uber’s service, but a few also questioned whether Small should be dissuading people from using Uber and encouraging them to try its rivals.
“Strange that an independent chairman would punt one business over another,” commented Warren Van Rooyen, a general counsel currently working as Foodstuffs North Island’s regulatory compliance lead, who later told the Herald he was posting in a personal capacity.
“Exactly my initial reaction,” replied University of Otago emeritus Law Professor Rex Ahdar.
Small defends comments
But Small told the Herald his LinkedIn post was intended to highlight how competition works in practice – in this case, how multi-homing by drivers enables new entrants to compete with established platforms.
“The reference to fare percentages was based on public information. The post has sparked robust discussion, including how competition can benefit both consumers and workers.”
Asked on Herald NOW (at 8.09am in the clip above) what he would do if the ComCom investigated one of the three rideshare firms, Small responded, “I could just recuse myself if anyone was concerned - and I can see that.”
Commenters split
Some LinkedIn posters defended Small.
Grant Foster, a productivity tools team leader at Xero, posted, “Their [the Commerce Commission’s] job is to ensure healthy and fair competition in NZ. This is in line with that by informing consumers of their options.”
Investment adviser Ed Porter countered, “Information is one thing, an outright recommendation is quite another. Feels like shaky ground.”
Software tester Daniel Lowe said, “He [Small] has incorrectly said tax when he meant commission/service fee.”
One senior business person, who did not want to be named, told the Herald, “To avoid any claims of bias or apparent bias, a judge, chief executive or chairperson should never ‘descend into the arena’.
“Once they do the perception of bias is raised. It appeared to me that the post at first glance was inappropriate on this basis.”
Veteran competition lawyer Andy Matthews was sympathetic to Small.
“It is obviously within the ambit of the commission to promote competition, including identifying competing options, and often the pros and cons of different offerings, he told the Herald.
“We often see the commission trying to ensure that consumers are sufficiently informed to make informed choices.”
And veteran telco and grocery pricing campaigner Ernie Newman weighed in with, “Totally in favour of John Small’s comments, which are consistent with an open style he brings to his role. Our Commissioners have a different status to other senior public servants. As such, they are entitled to express a view - and the public are entitled to know what makes them tick.
“If a few earlier Commerce Commission dhairs had expressed forthright views at opportune moments we might not have train wrecks in so many key consumer markets today.”
Uber keeps its own counsel
Uber did not respond to specific questions, including whether it had contacted the Commerce Commission with any concerns over Small’s post. (The board of Commissioners that Small heads also includes two representatives from Australia’s regulator, the ACCC.)
A spokeswoman sent the following comment: “At Uber, we welcome competition – which means more choices for Kiwis to get from A to B, and driver partners have greater flexibility and access to earn across multiple platforms, on their terms.
“Independent research by Public First found Uber contributed $1.5 billion to New Zealand’s economy last year. This reflects the value Kiwis place on the convenience and accessibility of rideshare and delivery services.”
Uber was in the Supreme Court last week, fighting to overturn a 2022 Court of Appeal ruling that classified four drivers as employees. A decision could take months.
Bigger slice of a smaller pie
While Uber’s rivals let a driver keep more of a fare, Estonian-owned Bolt does not have surge pricing (or at least, not after its NZ launch) while DiDi gives riders the option to bargain with a driver to gain a cheaper fare.
Uber owns part of DiDi
There’s another wrinkle.
Beijing-based DiDi bought Uber’s operation in China (where the US ride-hail giant had been struggling) in a complex deal in 2016 that left each firm holding a minority stake in the other.
In its 2024 annual report, Uber listed the value of its minority stake in DiDi at US$2.24 billion. The ride-sharing giant’s annual result included “a $443 million net unrealized gain on our Didi investment”.
Chris Keall is an Auckland-based member of the Herald’s business team. He joined the Herald in 2018 and is the technology editor and a senior business writer.