Uber isn’t going anywhere
The recent expansion of private ride sharing companies like Uber has caused a massive uproar from the taxi industry, concerned that Uber drivers don’t play by the same rules as they do. Currently taxi drivers must have specialized insurance, permits, and thorough background checks. However, Uber drivers, because they use their own vehicle do not need to abide by such rules. This unequal playing field has prompted cities to begin imposing similar regulations to Uber to create a fair market. The problem is that when cities implement such regulations, Uber simply leaves the city.
The taxi industry has had an effective monopoly over the industry and now that there jobs are threaten due to competition, they are fighting Uber tooth and nail. However, rather than clutching to the old system of regulations and city government involvement, taxi companies should be pushing for more freedom and less regulation. Instead of increasing regulations to Uber to meet current regulations on taxis, taxi regulations should be reduced to level the playing field with Uber.
Uber provides too many benefits to eliminate through regulation. Ride sharing has been a transportation demand management strategy for over 30 years, but the public sector could never figure out how to successfully implement the strategy. Uber has seemingly solved this problem over night. Ride sharing theoretically also improves public transit. Every public transit agency in the United States loses money. In fact agencies that only lose 40 cents on the dollar are considered fairly successful. Allowing Uber to take some of the burden of moving people around the city would enable agencies to spend more money on specialized services like para-transit.
The bottom line — Uber is here and isn’t going anywhere. Cities need to begin accepting Uber and fostering a competitive marketplace which will enhance both services rather than imposing regulations which impede competition and technological advancement.
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