By Don McCurdy
Reports are that Uber is being investigated for use of their "Grayball" software tool to profile regulators and thereby avoid their "sting" operations in areas where Uber isn't authorized to operate. The software tool was originally devised as a security measure to detect fraud, but is reported to have morphed into a regulator evasion tool.
Anyone that has observed the growth of Uber over the last few years could hardly miss the idea that Uber is against being regulated. Being a believer that regulators regulate the willing, I have to admire the idea that Uber's software would enable their drivers to avoid being ticketed. Is this legal? I don't think so.
It seems to me that presenting one's company as having integrity would be a hard sell when you're reported to be under federal investigation for dirty tricks.
Taxi or not taxi, that is the question.
Uber in Europe is reported to have taken a hit on a court ruling by the European Court of Justice determining Uber to be a "transportation service" and not a digital information service. Digital information service? The ruling comes from a Polish lawyer who is reported to have great sway with the full court.
The full court is reported to be deciding the issue in June, so it could be the end of the unregulated ride of Uber in Europe. Should the full court rule against Uber the Uber drivers would have to receive training, special licensing and a host of other regulations taxi drivers are already subject to.
Unlike the regulatory bodies in the U.S. the Europeans appear to arrive at their decision without political interference from higher political bodies. It will be interesting to follow this through.
18 years?
It's being reported that a Southern California taxicab driver is being deported after numerous appeals of a 1999 deportation order. The driver is reported to have attended numerous court hearings to obtain a green card but the courts repeatedly turned him down.
One has to wonder if it is necessary to have 18 years of court hearings to deport someone who is here illegally. According to the report, the Immigration and Customs Enforcement is focusing on those who have a deportation order or are a danger to the public. I find it quite amazing that it takes the government 18 years to enforce one of their own orders. So, if I get convicted of a federal crime, can I put off reporting to prison for 18 years? Probably not.
Would you like a latte with that?
Denver International Airport is reported to be seeking public input on how to better manage taxi transportation from the airport. It seems that the ride share companies are getting a larger portion of the outbound traffic every year.
So, what's the difference? Why are ride sharing companies getting more of a share of the outbound riders than the taxicabs? I can't say how it is in Denver, but I can report my experience in Houston.
Drivers wait a long time for a fare out of the Houston airport and if you go for a short fare, which I do, taxi drivers are quite unhappy. The city of Houston mandates a minimum fare from the airport of $25 to destination, the Uber fare was $11.57. Who would you call?
The simple fact of the matter is that taxicabs have gotten poor public relations reports for decades and cost more. Wanna improve the experience? Cut the fare in half.
Shoulda drove for Uber.
An Atlanta woman and her incarcerated boyfriend are reported to have been running a taxi service from the Atlanta federal penitentiary. The pair is accused of assisting prisoners in escaping for a night out and then returning them to the facility with bags of hard to
get goods.
According to authorities the woman received $4,000 over the last six months, which makes it a pretty low end occupation. She probably could have made more driving for Uber.
No help from the judge.
New York credit unions are reported to have been snubbed by a judge in their suit against the city for unequal treatment for taxicabs versus Uber and Lyft. The judge allowed that taxicabs were entitled to exclusive rights to street hails and cell phone app hails were not street hails.
The credit unions filed against the city when their estimated two billion dollars worth of taxicab medallion loans started looking like considerably less. Were I one of the aforementioned credit unions I believe I would have started looking for a manager to operate my medallions long ago. At the same time, I would have determined an explanation for shareholders as to why we're going under and solicit their help in petitioning the credit unions for relief.
Don't get Ubered?
In my constant search for news of interest in the taxi world I came across an article in which the writer questioned whether pharma brands "are an Uber or a taxi?" The point of the article was that pharma companies needed to get pay attention to the new consumer expectation or they might get "Ubered."
The article pretty much summed up the taxicab industry's lack of customer service allowing upstart Uber to get a foothold and then run over the industry. To quote the article directly "When Uber first debuted in 2010, taxi companies were focused on all the wrong factors to effectively compete.
Their primary concerns, including how to spend less yet earn more, increase passenger rates per driver and lower the cost of vehicle maintenance, focused on improving their bottom line, the company first, customer second mindset."
So, it seems that the problems of the taxicab industry were brought to light by Uber so clearly that people from other industries are using taxicabs as a horrible example of what could happen to them. So, what did the article say that Uber did differently?
Again quoting the article "Uber flipped that focus, putting consumers' needs at the forefront and asking itself: What is the best possible experience we can create for people needing a ride?" There were a few subsequent sentences that added to the Uber internal commentary, but it seems to me that the answer to competing with Uber is to be like Uber.
Focus on delivery of a quality product and stop looking to the regulators to save you from the evil empire.
If you have any comments regarding this or any of my articles please feel free to contact me at: don@mcacres.com.
-- dmc
