Originally Posted by
I-Like-To-Bike
I have no experience using Uber and the last time I took a taxi was in 2002. From what I read, Uber is being run by a couple of sharpies with few scruples, a well financed publicity campaign and political payoffs schemes, and a good application for dispatching so-called contracted help to pick up passengers in a timely and customer friendly manner.
I don't know why some smart tech guy doesn't come up with a similar smartphone application for use by conventional taxi cab companies to dispatch drivers and provide update service to customers. When that happens, and Uber, et al. is forced to play by the same labor and safety/insurance rules as well as requirements for picking up handicapped people as regulated taxi service, Uber's appeal will dwindle and market valuation should tank.
Much of the cost of operating a taxi is due to the licensing costs which have nothing to do with insurance or safety but are an antiquated system to artificially restrict the number of taxis operating in a city. In Vancouver, for example, the licenses trade for approx $800,000. I suspect other large cities have higher license values.
Nothing wrong with regulating an industry but it's not clear why the taxi business isn't more open like other ventures. Uber is helping to modernize this service in many cities although they seem to be having trouble operating in Vancouver.