Manners when you have a monopoly

Here's the situation: In a north american city (let's call it Vancouver), the taxi cab companies essentially have a deal with each other that means specific companies rule over areas of the city. For example, if you need a cab in North Vancouver you have to go through North Shore Taxi. So they drop you off downtown and now you want a ride home from this same cab company that offered good service to get you downtown. Not possible. The only way for them to pick you up downtown is if one of their cabs happens to be driving by and someone flags it down while its empty. An odd system which leads to a sort of monopoly mentality amongst the cab companies.

Here's the main problem that comes with all this, the customer service is downright embarassing and the majority of that can probably be attributed to the monopolistic way of this business.

So if you have a monopoly should you really treat your customers any different than if there is fierce competition in your business area???

No, you shouldn't. Especially not in this day and age. Consumers will find a way to call you out and eventually something will enter the market that removes the need for your service. 2 such things entering the market in this fictional city of Vancouver are Zip Car and Keys Please.

Zip Car allows people without cars a way to basically rent a car for an hourly rate. The gas, insurance and kilometers are included in the hourly price which comes in at a reasonable $9.75 during the week and $10.25 on weekends. Compare that to a taxi which can cost someone upwards of $30 for a 20 minute ride. It sells itself really.

Another common reason for needing a cab is if you have driven your car to a friends place and one Zima soon turns into 12. Now you need to get home without endangering yourself or others on the road. Well, you can call Keys Please and have your car driven home right behind you as you get a ride. So instead of having to deal with a cab company and then somehow reaquire your car in the morning, your car is waiting for you in your driveway the next morning. Now you just have to remember how it got there.

So, these alternatives may have arrived on the scene whether the taxi companies' customer service was exceptional or not, but I guarantee you they will have more success due to customers frustration in dealing with the monopolistic cab companies. We'll see how this plays out but if the cab companies had the attitude of building customer loyalty instead of providing the bare minimum level of service then they might have more success in the future.