How Canada Does Business
Earlier this week I found myself travelling from Vancouver Island to Vancouver (the city) on Hullo Ferries. Hullo is the latest iteration of a passenger-only service between the two places, or at least the latest non-airplane service.
Most people who travel from the mainland to the Island go via BC Ferries. In theory BC Ferries is part of the provincial highway system. In practice it's just an expensive and inconvenient way to move you and your car from Point A to Point B. BC Ferries terminals are located on out-of-the-way places that leave you sitting in a sea of asphalt, in the hot summer sun, for an hour or more with nothing to do.
That's bad enough if you have car, but worse if you're a foot-passenger. Then you add another hour or more on a bus to get to the actual terminal. And another hour at the other end.
Hullo Ferries claims to solve that problem by offering downtown to downtown service between Nanaimo and Vancouver. In practice "downtown" means that you need to catch a shuttle bus in Nanaimo to deliver you to the terminal, which is far out of town. On the Vancouver end you're dropped at the seaplane terminal, which means a ten minute walk to any of the public transit options.
Just for fun, what does each of these options cost?
BC Ferries, foot passenger? Well, first, they run their web site like their ferries. Long line-ups. And $22.55 one-way at any sensible travel time. Plus transit to the terminal of course.
Hullo Ferries? $19.99 on the lower deck, where you're forced to stand and wait while the people who paid $59.99 for the premium Upper Deck load and unload first. "Premium" means wider seats and... um, that's it.
Harbour Air will get you from Vancouver to Nanaimo in around 20 minutes on a floatplane for $78.00. Hullo Ferries runs about 2 hours, BC Ferries a little longer.
What Hullo Ferries demonstrates is what so many Canadian businesses have learned: the goal isn't to offer the absolute best service possible to your customers; it's to be just a little bit better than your nearest competitor.
Is Hullo Ferries faster than BC Ferries for foot-passengers? Just a little bit.
Is Hullo Ferries cheaper than BC Ferries? Just a little bit.
Is Hullo Ferries food cheaper or better than BC Ferries? Not really.
Does Hullo Ferries offer much that BC Ferries doesn't? Aside from WIFI, no.
Is Hullo Ferries as likely to be cancelled at the last minute, stranding you in the middle of nowhere? Absolutely.
At the end of the day Hullo Ferries is honestly just a little bit better than BC Ferries, and that minimal difference seems to be enough to keep their boats full.
That sums up so much of Canadian commerce. Multiple cel phone companies with the same high prices and lousy service. Internet and cable providers. Gas stations. Banks. Supermarkets. The list is long, and comprehensive, but the pattern is repeated over and over: It's easier not to compete on price, or service. That way all of these companies can keep making big profits without bothering to actually try to offer outstanding service or value.
Don't Canadians deserve better?
