The document summarizes the regulation of the taxi industry and the entry of Uber. It discusses how the taxi industry became regulated in the 1930s during the Great Depression to control the number of taxis operating. It describes how Uber entered the market in the last decade as an unregulated competitor, challenging the taxi industry's regulations around price controls, number of taxis, and safety standards. The document argues that deregulation of the taxi industry would allow fair competition with Uber and benefit consumers through technological improvements and better service from both companies competing in a free market.
Uber has consistently claimed that it is a digital marketplace connecting drivers, mostly non-professionals, with riders. This has meant that Uber has till now had a lighter regulatory burden.
But there should be a ruling such that Uber is a company providing transport services, and so Uber is required to adhere to the rules and regulations applicable to traditional taxi services.
Uber in China: What's next? (Study from DDIM 10 class)Alessio Mascolo
DDIM 10
Uber entered in the chinese market in 2013. They have launched in the market Uber Black, UberX, People's Uber (a non for profit private car sharing) and other customized products such as UberGreen. Despite all the money they spent, today Uber has only 8,2% of the market in China and its major competitor DidiKuaidi owns more than 78% of the market share. Our work is focused on the analysis of the various options, the selection of the best one according to cost criteria and results in terms of level of competiton. Then we build a 10-years action plan. Slide are available on slideshare.com
Whats exactly wrong with Uber - Legal Issues in Marketplace Services Business...Rahul Dev
Uber’s real problem is conflict of interest. Uber operates (or pretends to operate) and legally structures itself as a technology company but ends up providing taxi services, without obtaining required licenses and permits as required by local laws of each city.
Uber has consistently claimed that it is a digital marketplace connecting drivers, mostly non-professionals, with riders. This has meant that Uber has till now had a lighter regulatory burden.
But there should be a ruling such that Uber is a company providing transport services, and so Uber is required to adhere to the rules and regulations applicable to traditional taxi services.
Uber in China: What's next? (Study from DDIM 10 class)Alessio Mascolo
DDIM 10
Uber entered in the chinese market in 2013. They have launched in the market Uber Black, UberX, People's Uber (a non for profit private car sharing) and other customized products such as UberGreen. Despite all the money they spent, today Uber has only 8,2% of the market in China and its major competitor DidiKuaidi owns more than 78% of the market share. Our work is focused on the analysis of the various options, the selection of the best one according to cost criteria and results in terms of level of competiton. Then we build a 10-years action plan. Slide are available on slideshare.com
Whats exactly wrong with Uber - Legal Issues in Marketplace Services Business...Rahul Dev
Uber’s real problem is conflict of interest. Uber operates (or pretends to operate) and legally structures itself as a technology company but ends up providing taxi services, without obtaining required licenses and permits as required by local laws of each city.
Analysis UBER's strategy.
1. Define the problem UBER has tried to solve. (from both supplier and consumer's points of view)
2. Transportation industry(Taxi) before UBER
3. How UBER business actually works
4. Their international strategy
5. Five forces analysis
6. Challenges and suggestions
VisionsLive - a provider of online market research tools and services - decided in late 2015, to carry out an un-commissioned piece of research to use as a case study for the online qualitative approach.
The company and brand chosen for this was the global transportation company phenomenon – UBER.
UBER has since changed brand identity, however this piece of research (which was carried out prior to the company’s rebrand), goes some way to validate retrospectively, that these innovative entrepreneurs managed to anticipate the needs of their customers in their quest to drive the brand forward in the global marketplace.
The document also uncovers some quite startling and revealing observations in the way that qualitative research aspires to deliver - not only just information, but also to provide meaningful and actionable insights into what consumers truly think and want by using effective techniques designed to tap into their deeper thoughts and emotions.
The 'Uber-Economy': how marketplaces empowering casual workers disrupt incumb...FrenchWeb.fr
Qu'est-ce qui distingue l'évolution progressive d'un secteur, amené à intégrer le digital à son coeur de métier d'une véritable «ubérisation»? C'est à cette question qu'a souhaité répondre la banque d'affaires Clipperton avec son rapport.
Real time city-scale taxi ridesharing
Do Your Projects With Technology Experts
To Get this projects Call : 9566355386 / 99625 88976
Visit : www.lemenizinfotech.com / www.ieeemaster.com
Mail : projects@lemenizinfotech.com
Uber might provoke controversy, but there is no doubting the fact that it has been one of the most disruptive companies in the last decade. In this useful deck, our Mobile Product Strategist, Hamish Vallabh, outlines eight key things about great product design that you can learn from straight from one of the best 'habit-forming' services.
Uber created a new market which in initial stages was uncontested market space but in the growth stage competitors flooded the market but most of the competitors are irrelevant to Uber as the company is not only dominating the market but also fast expanding across the globe.
This presentation was made as a part of a competition and a team effort. All the information used are just for the event only.
Design of the slide and strategic part of this presentation (13-24) have been prepared by Raihan Khandker.
The Story of Uber In Communicating To Its Key Stakeholders In Singapore On Th...Isaac Ahmad
Our ultimate aim is to communicate how Uber can contribute
effectively in the “sharing economy” and align its business objectives to drive higher revenue
Analysis UBER's strategy.
1. Define the problem UBER has tried to solve. (from both supplier and consumer's points of view)
2. Transportation industry(Taxi) before UBER
3. How UBER business actually works
4. Their international strategy
5. Five forces analysis
6. Challenges and suggestions
VisionsLive - a provider of online market research tools and services - decided in late 2015, to carry out an un-commissioned piece of research to use as a case study for the online qualitative approach.
The company and brand chosen for this was the global transportation company phenomenon – UBER.
UBER has since changed brand identity, however this piece of research (which was carried out prior to the company’s rebrand), goes some way to validate retrospectively, that these innovative entrepreneurs managed to anticipate the needs of their customers in their quest to drive the brand forward in the global marketplace.
The document also uncovers some quite startling and revealing observations in the way that qualitative research aspires to deliver - not only just information, but also to provide meaningful and actionable insights into what consumers truly think and want by using effective techniques designed to tap into their deeper thoughts and emotions.
The 'Uber-Economy': how marketplaces empowering casual workers disrupt incumb...FrenchWeb.fr
Qu'est-ce qui distingue l'évolution progressive d'un secteur, amené à intégrer le digital à son coeur de métier d'une véritable «ubérisation»? C'est à cette question qu'a souhaité répondre la banque d'affaires Clipperton avec son rapport.
Real time city-scale taxi ridesharing
Do Your Projects With Technology Experts
To Get this projects Call : 9566355386 / 99625 88976
Visit : www.lemenizinfotech.com / www.ieeemaster.com
Mail : projects@lemenizinfotech.com
Uber might provoke controversy, but there is no doubting the fact that it has been one of the most disruptive companies in the last decade. In this useful deck, our Mobile Product Strategist, Hamish Vallabh, outlines eight key things about great product design that you can learn from straight from one of the best 'habit-forming' services.
Uber created a new market which in initial stages was uncontested market space but in the growth stage competitors flooded the market but most of the competitors are irrelevant to Uber as the company is not only dominating the market but also fast expanding across the globe.
This presentation was made as a part of a competition and a team effort. All the information used are just for the event only.
Design of the slide and strategic part of this presentation (13-24) have been prepared by Raihan Khandker.
The Story of Uber In Communicating To Its Key Stakeholders In Singapore On Th...Isaac Ahmad
Our ultimate aim is to communicate how Uber can contribute
effectively in the “sharing economy” and align its business objectives to drive higher revenue
SWOT Analysis: Uber
MBA 686
SWOT ANALYSIS: UBER
John Brooks, Sara Vong, Ade Adesida, & Tyler Frankenfield. ATSJ Marketing.
Benedictine University
STRENGTHS
The name Uber is synonymous with the ride service market. Uber has enjoyed and capitalized upon first to market advantages. Although Uber isn’t a market disrupter by the strictest definition, as some have ascribed to it, it has completely changed the ride service market, which has long been dominated by cab companies (Christensen, Raynor, & McDonald, 2015). Uber has distinct advantages over traditional cab companies, where in many cities; expensive tokens are required to operate (Salmon, 2011). The tokens also serve to limit the fleet of cabs available, which is not in the best interest of consumers. Consumers have noticed this, and as such have voted with their wallets. Uber drivers use their own vehicles, which makes for a large fleet. This means supply is not a limiting factor. Unlike cab companies, Uber does not have employees, rather it has independent contractors. This helps reduce overhead costs even more, which are already low. This allows Uber to pass along better pay to drivers, and better rates to consumers (Worstall, 2014). In addition to saving money, consumers benefit from the user friendly nature of being able to pull out a smart phone, and have a driver there to pick them up within minutes. Other conveniences include the ease of payment via the app, a rating system that allows users to select highly rated drivers, and customers can choose the level of service (SUV, taxi, black car, etc.….). Although there is much debate about exactly what Uber’s current value is, there is no debate about whether or not it is a successful and valuable company. This makes it an attractive company for many investors. In fact, earlier this year Uber raised $3.5 billion from the Saudi Sovereign Wealth Fund (Konrad, 2016). All signs point to Uber being primed for expansion into new markets.
WEAKNESSES
Uber’s business process and product are simple and easily replicated, and there is nothing Uber can do to stop competitors from eating into their market share (Chan, 2015). Uber may have gained a first mover advantage in the ride sharing market, but with no barriers to entry, the market will become even more competitive. Internationally, Uber has shown a weak knowledge of local markets. As evidenced by the recent sale of Uber China to local rival Didi Chuxing, local strategies are required for local markets (Somerville, 2016). Uber tried to use strategies that were successful in other markets and rushed entry into China and Indonesia without an understanding of the culture, business dynamics and consumers (Somerville, 2016). Uber has already made significant investments in their technology and research and development, and have undergone a trial and error period that new startups will not have to endure because they can learn from Uber’s mistakes and costs to their reputation. Bei ...
Developing persuasive business messages part IIBy Alicia Laste.docxlynettearnold46882
Developing persuasive business messages part II
By Alicia Laster
MEMO
TO: All Board Members
FROM: Alicia Laster
DATE: 24/03/2017
RE: Investment into the Taxi Business
In light of recent events and proposals, I would wish to address all board members on the matter of this organization investing in the taxi business. As you saw in my analysis, the taxi business is a very profitable business which we need to start to increase funds in our organization. If we start the business, we will increase income levels in our company and create more employment or the population. With the money we get from the taxis, we will increase our organization's strength and capital levels hence we can undertake even more huge investments. The organization will grow to noticeable heights internationally. This is the breakthrough this organization has been yearning for a long time.
If we embark on this project, we will be able to fund other major projects since the taxi project requires less capital but the yields will be very high. The taxi business will make more money than any other project this organization has worked on. All members should support this project since its benefits will grow the organization.
Reasons why we should support the taxi business and fund it is that it will drastically make a lot of revenue for the company. It will also publicize the company and attract investors to fund and do business with this organization. There is less competition in the taxi business compared to other businesses. The risk is also reduced since all taxis will be insured and equipped with gps tracking to avoid theft and losses. The government through insurance compensates taxi owners after an accident hence risk on vehicle is greatly reduced. I have done enough research and I can assure you that taxi business is lucrative. Around our organization, there are barely any taxis and the population is very high. We can take advantage of this and net the market around us. This will be a good heads start. I request that all board members forward a list of their thoughts on the issue.
Research on Taxi Business in Australia
Introduction
To a great extent in view of their daily accessibility and ability to give fast reliable benefit, cabs are a vital supplement to customary planned services given by different types of common transport. Cab administrations are especially significant to less versatile gatherings in the group, for example, elderly and handicapped individuals.
It is essential that such administrations are proficiently given, address clients' issues and are fittingly estimated. There have been long-standing worries that these targets would not be satisfied without government intercession. Thus, governments in Australia, and in numerous different nations, have customarily firmly controlled the arrangement of taxi (and contract car) services.
The type of cab markets
Cab services are one of only a handful couple of enterprises in Australia that the value, th.
Running head Uber Case Study2Uber Case Study.docxjenkinsmandie
Running head: Uber Case Study
2
Uber Case Study
Uber Case Study
XXX Student Name
June 30, 2018
I. Overview of Uber
Uber is a ride sharing company that was launched in San Francisco in 2010 when UberCab connected its first rider with a town car for a ride across the city (Uber.com). The company was designed to allow consumers to hail a ride from local drivers with the simple push of a button (using an app), and has since disrupted the taxi cab industry. The inception of Uber brought new technology and ideas into a transportation sector historically lacking in innovation and customer service. The company’s founders saw an opportunity to use technologies such as smartphones, GPS and Google Maps to improve transportation and the result has been a more convenient, faster and cheaper service.
Uber is headquartered in San Francisco, California and operates by charging consumers for rides. This is primarily how the company generates revenue (although they do participate in some advertising on their website). The Uber app facilitates the location of a driver and the transfer of funds. The fare is then charged to the consumer’s credit card (Investopedia.com, 2018). Uber quickly raised money and launched operations in hundreds of cities; it is now in over 65 countries and cities worldwide. Last year, Uber announced it had completed 4 billion trips (15 million trips are completed each day) (Uber.com).
Since 2010, Uber’s service offerings have become quite expansive. Although they initially offered only full service luxury vehicles, now when hailing a ride consumers have choices such as Uber Pool, Uber X, Uber XL and Uber Black. These choices were non-existent previously with taxi cab companies. More recently, Uber has entered other markets such as the food delivery business. They now offer services such as UberEATs which delivers food from local restaurants (Ubereats.com, 2018).
To understand Uber’s main competitors and market structure, it is important to understand some of the history behind taxi companies, especially in major cities. Taxi cab drivers had a monopoly prior to Uber entering in many cities such as New York. In 1937, New York City passed the Haas Act which established a licensing system to influence supply. The system required taxi drivers to purchase a medallion in order to operate. The government sells limited numbers of medallions which allows them to control competition and entry into the market. This is at the expense of consumers since it restricts supply and keeps costs high. Despite a growing population, the number of available medallions has remained partially fixed, only increasing marginally. Taxi drivers with a medallion enjoy high profits and have fewer incentives to ensure satisfaction. Today, the number of medallions in New York City remains capped, maintaining a barrier to entry.
After Uber launched in New York City, the prices of medallions dropped significantly; this has be.
THE TACTICS BEHIND THE GLORY OF UBER TAXI’SVARUN KESAVAN
Uber was founded in San Francisco, California in 2009. It started as a transportation network company that utilized licensed taxi drivers for its ridesharing services. In recent years the business has introduced non-taxi driving rideshare services into its business model. The idea behind the business was to integrate a mobile application into its practices to connect passengers with drivers of vehicles for hire. The drivers within their network utilize luxury vehicles for passengers to ride in style like Lincoln Town Cars, Escalades, BMW 7 Series, and Mercedes-Benz’s. Users are able to reserve vehicles by sending text messages or through the use of the application on their mobile devices. The customer can also track the vehicle as it makes its way to their location.
A picture is worth a thousand words. Discussion question for this.docxkeiran409es
A picture is worth a thousand words. Discussion question for this week, please view the periodic table of visualization at the following link (https://www.visual-literacy.org/periodic_table.html). Choose one Data Visualization and one Compound Visualization by placing your mouse cursor over each option.
2-1 Introduction
Uber Technologies Inc. (Uber) is a tech startup that provides ride-sharing services by
facilitating a connection between independent contractors (drivers) and riders with the use
of an app. Uber has expanded its operations to 425 cities in 72 countries around the world
and is valued at around $70 billion, making it the world’s most valuable startup.
Approximately 30 million users use Uber’s services monthly. Uber has become a key player
in the sharing economy, a new economic model in which independent contractors rent out
their underutilized resources such as vehicles or lodging to other consumers. The sharing
economy is quickly becoming an alternative to owning resources outright. Because its
services cost less than taking a traditional taxi, Uber and similar ride-sharing services have
upended the taxi industry. The company has experienced resounding success and is
looking toward expansion both internationally and within the United States.
However, Uber’s rapid success is creating challenges in the form of legal and regulatory,
social, and technical obstacles. The taxi industry, for instance, is arguing that Uber has an
unfair advantage because it does not face the same licensing requirements as they do.
Others accuse Uber of not vetting their drivers, creating potentially unsafe situations. Some
major cities are banning ride-sharing services like Uber because of these various concerns.
Additionally, Uber has faced various lawsuits, including a lawsuit filed by its independent
contractors. Its presence in the market has influenced lawmakers to draft new regulations to
govern this “app-driven” ride-sharing system. Legislation can often hinder a company’s
expansion opportunities because of the resources it must expend to comply with regulatory
requirements. Uber has been highly praised for giving independent contractors an opportunity to earn money as long as they have a car, while also offering convenient ways for consumers to get around at lower costs. Although its “Surge Pricing” technique has been criticized for charging higher fares during popular times, it is also becoming a model for other companies such as Zappos in how it compensates its call center employees. The biggest issues Uber faces include legal action because drivers are not licensed, rider and driver safety,protection and security of customer and driver information, and a lack of adequate insurance coverage. To be successful, Uber must address these issues in its marketing strategy so it can reduce resistance as it expands into other cities.
2-2 Background
In 2009 Travis Kalanick and Garrett Camp developed a smartphone application to connect
dri.
2-1 IntroductionUber Technologies Inc. (Uber) is a tech startu.docxherminaprocter
2-1 Introduction
Uber Technologies Inc. (Uber) is a tech startup that provides ride-sharing services by
facilitating a connection between independent contractors (drivers) and riders with the use
of an app. Uber has expanded its operations to 425 cities in 72 countries around the world
and is valued at around $70 billion, making it the world’s most valuable startup.
Approximately 30 million users use Uber’s services monthly. Uber has become a key player
in the sharing economy, a new economic model in which independent contractors rent out
their underutilized resources such as vehicles or lodging to other consumers. The sharing
economy is quickly becoming an alternative to owning resources outright. Because its
services cost less than taking a traditional taxi, Uber and similar ride-sharing services have
upended the taxi industry. The company has experienced resounding success and is
looking toward expansion both internationally and within the United States.
However, Uber’s rapid success is creating challenges in the form of legal and regulatory,
social, and technical obstacles. The taxi industry, for instance, is arguing that Uber has an
unfair advantage because it does not face the same licensing requirements as they do.
Others accuse Uber of not vetting their drivers, creating potentially unsafe situations. Some
major cities are banning ride-sharing services like Uber because of these various concerns.
Additionally, Uber has faced various lawsuits, including a lawsuit filed by its independent
contractors. Its presence in the market has influenced lawmakers to draft new regulations to
govern this “app-driven” ride-sharing system. Legislation can often hinder a company’s
expansion opportunities because of the resources it must expend to comply with regulatory
requirements. Uber has been highly praised for giving independent contractors an opportunity to earn money as long as they have a car, while also offering convenient ways for consumers to get around at lower costs. Although its “Surge Pricing” technique has been criticized for charging higher fares during popular times, it is also becoming a model for other companies such as Zappos in how it compensates its call center employees. The biggest issues Uber faces include legal action because drivers are not licensed, rider and driver safety,protection and security of customer and driver information, and a lack of adequate insurance coverage. To be successful, Uber must address these issues in its marketing strategy so it can reduce resistance as it expands into other cities.
2-2 Background
In 2009 Travis Kalanick and Garrett Camp developed a smartphone application to connect
drivers-for-hire with people needing rides to a destination in their city. Earlier in the year the
founders had attended the inaugural address in Washington, D.C. and could not hail a taxi.
They recognized the need for a convenient, low-cost transportation service. This innovative
service was originally founded.
This case study explores the journey of Uber and Ola, two ride-hailing giants who revolutionized urban transportation in India. We analyze their distinct strategies, successes, challenges, and overall impact on the nation's mobility landscape.
The Uber Impact - Canadian Workers in the New “On-Demand” Economy
EC 461 Regulation of Taxi Licenses and Entry of Uber
1. Michelle Reis
August 11, 2014
EC416, Industrial Organization & Public Policy
Joseph Wyer
Regulation of Taxi Licenses and the entry of Uber
The taxi industry began following the invention of cars in the mid-1800s. The industry
was largely unregulated up until the 1930s when the Great Depression hit proceeding World War
II. With limited jobs in the economy, the taxi industry saw a large climb in the entry of
unemployed people trying to earn cab fare (Wyer). The taxi companies that were already
established, responded to the increased entry by pressuring for more regulation in the industry, a
response exemplified in the Becker model fashion. Successively occurring in the 1930s, taxis
became government supported monopolies that were only able to operate and exist in turn for
following the regulations set by local governments. The regulations ensured the protection of the
taxi industries interests to earn fair wages and the consumers’ interests for quality of service,
fairness in pricing, and public safety. The taxi industry has successively held their monopolistic
power for abiding by these regulations that still continue to impact the industry today. However
in the last decade, Uber, a tech startup that offers car services, entered the highly regulated taxi
industry. Entering as an unregulated firm, Uber is directly competing with the taxi monopoly’s
extensive regulations that consist of entry restrictions of price controls, number of taxis in
operation, and practices, for a profit (Wyer).
The taxi industry requires local governments to practice regulation by setting mandatory
prices for taxis to charge their consumers. Regulations of price control profits in the taxi industry
2. 2
ensure cab drivers can earn a minimum profit. For instance the rates in Boston, Massachusetts
are, “$2.60 for the first 1/7 of a mile and then 40 cents for each additional 1/7 mile”
(Mohammad). Boston taxi rates, comparable to all taxi market rates in the industry were set with
no consideration of being effected by competition. Explained and displayed through x-
inefficiency, the taxi monopolies did not have pressuring competition that would force them to
cost-minimize, so instead they set the price above their long-run average costs to make positive
profits (Wyer). With the prices fixed above average cost, Uber came into the industry and had
the incentive to set their prices below the long-run average cost at the minimum efficient scale,
where it was equal to their demand and they could make a profit. Uber mainly charges its
consumers on a mile basis rather than time, and payments are directly billed to their credit cards
and a no need to tip policy (Brustein). With Uber setting their prices lower, they can advertise
discounts and the taxi industry is unable to respond immediately. Even if the taxis were able to
respond, they would experience a regulatory lag, in which it would take a significant amount of
time for regulators to change price. This would ultimately not be beneficial for the taxi industry
because Uber also practices surge pricing, meaning that even if the monopolistic regulation did
change, they still could not compete. As Downes states, surge pricing by Uber is practiced
through “raising prices when demand is high and lowering prices when demand is low”
(Downes), to reach an economic equilibrium. Uber’s lower prices compared to the taxi industry’s
regulated prices, Uber becomes more attractive to consumers and therefore gains more demand
and profit. Unable to respond to Uber’s pricing, the taxi industry, tied to its fixed price rates, is
losing customers and ultimately profit because there is a cheaper alternative for consumers.
The taxi industry requires ownership of medallions as a form of regulation to control the
supply and entry of taxis in operation. Medallions, placed on the vehicle hood for clear visibility,
3. 3
signify that the vehicle is a licensed taxicab and it also gives the driver the right to operate the
vehicle (Badger). There are limits to the supply of medallions in these taxi markets because with
a high demand exceeding the supply of taxi services, medallions become an even more valuable
asset (Badger). For example, the number of medallions in New York City has fallen from the
issuance of 13,566 in 1937 to 12,187 issued in 2003, despite the population growing from seven
million to eight million during that time period (Wyer). With the restricted supply of medallions
in the taxi industry, the entrance of Uber into the highly regulated industry threatens the
medallions’ individuality it holds in the industry. Uber’s service opens the market to a multitude
of drivers, reducing the value the medallion holds with its monopolistic service. The value of the
medallion, “determined through the total future discounted profits created by the entry and price
regulation” (Wyer), is diminishing as Uber directly influences that value through their
unregulated influences in pricing and entry. The greatest threat to the taxi industry with the
diminishing value of the medallion, is the loss of drivers that it will incur. Uber drivers can earn
fees comparable to cab drivers without having to own a cab or a medallion, which can lead to the
entire loss of drivers and therefore profits for taxis in the taxi industry (Badger). Uber’s presence
in the industry has shown a great drop in the price and value of medallions exemplifying the rate
at which drivers are entering the industry. The taxi industry finds this practice unreasonable
because their individual worth is being diminished, which is necessary to successfully exist in
the industry.
Safety regulations and insurance for cabs are in place to maintain a standard level of
security in the taxi industry. To be a taxi driver, one must meet all the standards of licensing,
training, and vetting practices (Baker). The vehicles used in operation are inspected and the cab
drivers must have their license renewed annually (Baker). With these strict regiments, the taxi
4. 4
industry provides quality service focusing ultimately on the safety of their consumers. Although
with the entrance of Uber, the industry is being exposed to changing factors because Uber does
not comply with the same safety standards. For example, Uber offers a service that allows the
use of an individual’s car if it is accessible and its quality is in exceptional condition. So, Uber
does not have standardized vehicles as the taxi market does. The drivers of Uber cars are only
required to have a criminal background check and to carry a license and proof of auto insurance
while in operation (Baker). Uber claims they monitor the vehicles that operate in their company
extensively, but Josh Eidelson, found facts that suggest otherwise. As Eidelson states, “The
company says it monitors them, but a recent police sting at San Francisco’s airport caught nine
UberX drivers operating without proof of insurance”. The practice that Uber partakes in proves
to be at an unfair advantage to the taxi industry, because they do not comply with standards in set
by the taxi industry to protect its customers.
Uber has greatly changed the conditions in the taxi industry through their practices in
price controls, number of taxis in operation, and safety regulations. With the entrance of an
unregulated firm in a highly regulated industry, Uber has made cause for great debate and
lawsuits that the taxi industry has imposed upon them. At the center of controversy, the taxi
industry claims that Uber provides a nearly identical service as taxis and should therefore be
required to follow the regulations set in place by the taxi industry and comply with all of the
same requirements. Uber has successfully argued that since the vehicles are not hailed down
from the streets, they are not offering taxi services. The difference is small but rather than hailing
cabs from the street, Uber’s consumers use an online app to get a car, which is seemingly
holding up with government decisions (Mohammad). Taxis do not feel that it is fair to exempt a
business from any of the regulations set in place simply because they provide their services over
5. 5
the internet. However, Uber claims they should not face the same regulations as the taxi industry
because they bring innovation to the industry that the industry would not otherwise be capable
of, which is ultimately in the best interests of consumers. Uber presents itself to be a new market
that is the source of innovation rather than new technology from incumbent firms (Mohammad).
Although facing lawsuits, there are solutions the taxi industry can partake in to ensure the fair
competition they would like to see in the industry.
Most of the existing regulations in the taxi industry remain from a time when there was a
distinct relationship between the service and delivery of taxis. The regulations of taxis no longer
fit the market because technological innovations have entered this field and overlapped the
services provided by the taxi industry. Local governments need to understand that consumers
view the service of Uber as a close substitute to receiving services from taxis. Therefore, the
industry regulations need to change to merely fit the changes in society from technical
innovations that have greatly affected the structure of the industry. Through deregulation, the
taxi industry will be able to compete fairly with Uber and provide consumers with the best
service. In a competitive market generated by fair competition, the most successful service
would naturally win without unfair advantages. Through the practice of deregulation in the taxi
industry, the industry can experience positive technological improvements. With taxis feeling
that they are at an unfair advantage with pricing controls, medallions, and safety regulations, I
believe that deregulation is the best solution for the taxi industry and the effects would benefit
everyone through fair competition.
6. 6
Works Cited
Badger, Emily. "Taxi Medallions Have Been the Best Investment in America for
Years. Now Uber May Be Changing That." Washington Post. The Washington Post, 20
June 2014. Web. 06 Aug. 2014.
<http://www.washingtonpost.com/blogs/wonkblog/wp/2014/06/20/taxi-medallions-have-
been-the-best-investment-in-america-for-years-now-uber-may-be-changing-that/>.
Baker, Dean. "Don't Buy the 'sharing Economy' Hype: Airbnb and Uber
Are Facilitating Rip-offs." Theguardian.com. Guardian News and Media, 27 May 2014.
Web. 11 Aug. 2014. <http://www.theguardian.com/commentisfree/2014/may/27/airbnb-
uber-taxes-regulation>.
Brustein, Joshua. "Uber's Fare War on New York Taxis Puts Million-
Dollar Medallions at Risk." Bloomberg Business Week. Bloomberg, 07 July 2014. Web.
11 Aug. 2014. <http://www.businessweek.com/articles/2014-07-07/ubers-fare-war-on-
new-york-taxis-puts-million-dollar-medallions-at-risk>.
Downes, Larry. "Lessons From Uber: Why Innovation And Regulation
Don't Mix." Forbes. Forbes Magazine, 06 Feb. 2013. Web. 11 Aug. 2014.
<http://www.forbes.com/sites/larrydownes/2013/02/06/lessons-from-uber-why-
innovation-and-regulation-dont-mix/>.
Mohammed, Rafi. "Regulation Is Hurting Cabs and Helping Uber."
Harvard Business Review. HBR Global Editions, 9 July 2014. Web. 11 Aug. 2014.
<http://blogs.hbr.org/2014/07/regulation-is-hurting-cabs-and-helping-uber/>.
Wyer, Joseph. "Estimating the Effects of Regulation." Econ 461 Lecture. United States, Eugene.
6 Aug. 2014. Lecture.
7. 6
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Wyer, Joseph. "Estimating the Effects of Regulation." Econ 461 Lecture. United States, Eugene.
6 Aug. 2014. Lecture.