Earlier this month, Bloomberg published this map showing where Uber operates and where it’s been banned (or is being challenged). You can click on the map for a larger version.
Uber operates in about 250 cities across the world. But it’s being challenged in a lot of them, including Portland, San Francisco, Los Angeles, Toronto, Rio de Janeiro, Paris, Berlin, as well as others.
I don’t want to dismiss any of the safety concerns that have arisen lately, because those are very serious and they need to be addressed. Life safety is paramount. But I continue to believe that banning a service that many people clearly want to use isn’t the right solution.
On top of that, I think it could lull many of the local taxi communities into a false sense of security about the future. Uber is moving incredibly quickly. UberX launched in Toronto in September of this year. And
The title of this post is a line from one of the works of Jenny Holzer. It feels appropriate right now.
On Wednesday, Toronto saw a large scale anti-Uber protest involving as many as 2,000 taxis. It involved a bunch of taxis driving real slow around downtown, some altercations, and lots of people who want to see Uber completely shut down.
This, of course, isn’t a new thing for cities.
Many cities around the world have seen similar kinds of protests. But many of you will probably also agree that this is not the most effective response from the taxi industry. It casts a negative light on them at a time when people are already switching to Uber for better service. It also ignores the fact that – in my view – Uber ain’t going anywhere.
I’ve been a vocal supporter of Uber on this blog and I continue to believe that it will continue to prove to be a good thing for both consumers and for cities. In fact, famed startup investor Paul Graham once tweeted that because Uber is so clearly a good thing, you can tell how corrupt a city is by how hard it fights against it. This has become the truism among today’s urbanites.
At the same time though, I am trying to take a balanced view on this issue, which is what got me thinking about the work of Jenny Holzer. Protect me from what I want. Today, I want Uber. But I am trying to think of where that want might lead me.
Like a lot of private companies, the goal of Uber is monopoly profits. They would love to control the market. And that’s not a knock against them. It is just business. But I am imagining a market where only Uber exists.
When I was in Miami last week I switched back and forth between UberX and regular taxis. Because Art Basel was going on, Uber was frequently in surge pricing. Sometimes as high as 4x. So in those cases, I just hailed a regular cab. Thankfully the cabs there are pretty reasonably priced and easily to hail. The driver didn’t ask me if I liked the electronic music playing on the satellite radio, but that’s not a big deal.
But what if I didn’t have the option of hailing a regular cab? What if Uber was my only option and I had to put up or shut up when prices were 4x? That would be suboptimal in my books.
So what does this all mean?
I am an Uber customer. I do not want and I do not believe it will go away. But I also believe that our public policy should encourage competition in the taxi marketplace. Competition holds people and companies accountable. It means that if you stop creating value, you will go out of business.
It’s for that reason that I think the taxi lobby is wrong in trying to force Uber to shut down. And it’s for that reason that cities are going to have to work very hard at crafting the right kind of public policy. I am optimistic that Toronto will make that happen. But as we’ve seen today, there will be bumps along the way.
Tech Tuesday: Uber testing out “Smart Routes” in San Francisco
Uber is currently testing out something called “Smart Routes” in San Francisco.
Basically it works similar to UberPOOL (where you carpool with strangers to bring the cost down), except that your pickup location (and trip?) is confined to a specific route.
This means less detours and more rides for drivers, as well as even cheaper fares for passengers. But just like public transit, you’ll likely have to walk a few minutes to get to the closest route.
Here’s a screenshot of what that looks like (via TechCrunch):
The green line is the “Smart Route.” So all you have to do is select a pickup location somewhere along that green line, and you’ll save a bit a money. Currently it’s “$1 or more” off your fare, but who knows what it might be when this feature actually rolls out.
This is fascinating to me because it’s starting to look and feel a lot like a conventional bus route. But in this case, the routes can change and new routes can be easily created as demand changes.
So it’s not just taxis that need to be thinking about Uber. It’s public transit authorities as well.
UberPOOL
– their new carpool service – is likely next.
With these releases, Uber is working towards a specific vision for the future: Their goal is to eliminate the need for private vehicle ownership. Should they be successful, this will not only impact taxis, but also car manufacturers and urban mobility in its entirety.
So as difficult as it might seem right now, I think urban leaders would be better served trying to figure out how to harness these innovations. Cities have been trying for decades to get people out of their cars. Uber wants to do the same.
