We have all assumed that Uber might wreck the traditional taxi market. Now, no less than in San Francisco, there’s some evidence. The annoyed cab drivers and techno- optimist disrupters have always suspected that Uber would eventually set hackneyed yellow cabs out of the industry. Now in the San Francisco some new reports have revealed that Uber is really hammering the metered cabs very hard.
Kate Toran, director of taxis for San Francisco’s transportation authority, has recently reports on a testimony by The San Francisco Judge. He said that by permitting Uber for its taxi service in October of 2012, the monthly average trips for each city cab has dropped from 1,424 in 2012 to 504 in July 2015 which is nearly 65%. Her report also suggested that wheelchair pickups have fallen from 1,378 each month in March of 2013 to 768 in July, the decreasing rate is over 50%. Besides, she also said, “The ramp taxi program is just a vulnerable program in the taxi program overall because it costs more to operate, maintain and it costs more in gas for the drivers”. “It takes more time to do wheelchair securement, so it’s kind of the first to go.” Based the Examiner, transportation multilevel companies, unlike city cabs, are not necessary to be wheelchair available.
San Francisco isn’t the single city where Uber is acquiring the taxi business. In many cities like; Chicago to Berlin the drivers have gone for strike, protested in opposition to Uber’s entrance, claiming that ride-sharing firms are not competing fairly as they are not subject to same rules and regulations while official taxis are. In August, Pat Quinn the governor of Illinois vetoed a bill that will require firms such as Uber to submit their drivers background record checks, comply with new insurance necessities, along with limit “surge-pricing” whereby fares are dynamically raised up during high-demand hours.
In a recent article published by Harvard Business Review, blamed the excessive laws and regulations of city cabs to be a prime reason, why yellow cabs are not able to compete with the new transportation system. For example, metered taxis can’t dynamically change the fares with the changes of demand whereas Uber can. Uber often dropped its own fares under those of city cabs realizing its regulated competition will be a struggle to respond. In addition to that, they have also taken benefit of special rush hour rating.
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The regulators of the San Francisco have responded to competition from Uber-like companies by reducing some standards so as to keep yellow taxi drivers from jumping ship. The application fees of drivers are relinquished for the year, and other fees are also lessened. Besides that they are also disregarding a $500 charge for just a wheelchair-friendly cab licenses. While Uber’s entrance to the taxi industry has been bad for taxi service providers, it may possess improved their services. A recent report said 80% of the city’s cab passengers are now using the FlyWheel hailing app, which lets them summon and pay taxis bill by using their phones.
In a self-produced documentary, a San Francisco taxi driver discusses about how the predatory charging and unregulated services of firms like Lyft, Uber have changed the taxi market for both drivers as well as passengers. John Han, an interviewer of drivers from San Francisco cab companies as well as transportation network companies (TNCs) s showed the local history of taxis as they went from benefited workers to independent contractors with no welfares. He also concedes that the cab industry suffers from failing to acclimate to the service necessities of the communal also for employing a mix of “bad apples” mixed in with fleets of “amazing drivers.” In addition to that, he also raises questions about the unregulated service of TNCs, their comparative inability to accommodate sick passengers, plus their impact on the environment.