The popular crowd sourcing app Uber has come under fire recently for the unfair playing field that is thought to have been created by the company. Since Uber is unregulated in regards to the services that they provide, the drivers of their vehicles do not need to buy a taxi medallion (license) that costs $1,000 per month in order to be in service. Taxi drivers have begun to protest, in Boston in this case, due to the new competition and their inability to earn a living wage due to their differences. They are offering the same services to customers, yet Uber does not have the obstacles that are faced by taxi companies.
With so much innovation happening in a short period of time, there are going to be clashes between old ideals and new ideas. It will take time for the government to look over complaints from all industries to see if something should be done to regulate competition or if what is going on is just a case of “American-style” competition. Time will tell whether or not the gap will be closed between old and new ideas.
Hundreds of Boston cab drivers protest Uber
BOSTON —Hundreds of Boston taxi drivers formed a “rolling rally” Thursday to protest the growth of ride-sharing services, like Uber, that are eating into revenues.
“Our drivers have been coming to me for some time now, saying, ‘Uber is killing us now. We can’t make a living,'” United Steel Workers rep Donna Blythe-Shaw told NewsCenter 5’s Liam Martin. USW represents the Boston Taxi Drivers Association. Some of their drivers have lost as much as 40 percent in fare sales since the influx of Uber.
Uber, which is based out of San Francisco and now operates in several cities around the world, is an app that allows users to request rides directly from their phones. The service ranges in price from “UberX,” which connects users with “ride-share” drivers, to Uber Black and Uber SUV, which costs more than an average cab fare and uses traditional livery drivers.
Mohamed Noor used to drive a conventional cab. He was paying $1,000 a week to lease a Boston taxi medallion, which are generally bought up by companies and rented to drivers.
So Noor bought his own luxury SUV, and now drives it for Uber Black. Uber takes a 20 percent cut, which means Mohamed takes home a much larger percentage than he did as a cabbie.
“Most of my friends have already joined Uber, and the remaining are on their way to joining Uber,” he told NewsCenter 5.
“I am not as reckless as I was; I don’t have to pay toward medallion owner; I’m building credit. My life is good.”
Mohamed’s story is what worries Boston’s conventional cab drivers.
The problem, Blythe-Shaw tells us, is that Uber isn’t subject to the same regulations. They don’t own medallions; they don’t pay to license their cabs; and their drivers aren’t vetted by law enforcement.
“There’s no level playing field,” Blythe-Shaw said.
The BTDA has also raised concerns about safety for passengers. Because it’s unregulated, Uber doesn’t have to pass its drivers through the typical law enforcement background check.
Uber insists it runs its own background checks on drivers, and said it also partners with them to ensure they have adequate insurance, in the event of an accident.
“Rich taxi medallion owners should spend their time expanding opportunity for their drivers, underserved communities and investing in new, safe and reliable vehicles, rather than complaining about what Bostonians already know: Uber is the safest, most affordable and reliable ride in Boston,” Uber spokeswoman Nairi Hourdajian wrote to NewsCenter 5 in a statement.
“We welcome any Boston taxi driver who is starting his or week hundreds of dollars in the hole just to rent their taxi, to experience the economic opportunity, driver safety and flexibility that the Uber app affords drivers.”
At its rally Thursday, the BTDA called on Boston Mayor Marty Walsh to step in and either shut Uber down, or start regulating it.
He responded that his office is looking into the matter.
“We cannot turn a blind eye to public safety concerns around unregulated modes of transportation,” he wrote in a statement. “But we also cannot condemn a popular, effective service that takes responsible steps to ensure the safety of their users.”
Read more: http://www.wcvb.com/news/boston-cab-drivers-protest-uber/26129512#ixzz338CE3HL7