I’m often surprised by the responses I get here and elsewhere on topics such as Uber or Apple. I don’t think my opinions on these subjects are particularly outlandish. I’m not an Apple fan-boy so I accept that my general indifference to the MacCult is off-putting to those people, but Uber? How can anyone say anything outrageous about a car service?
You live and you learn so I’ll address some of the objections.
Objection #1:
competition (Uber) against a staid industry (taxi cab cartel) is ultimately beneficial, even if there are some kinks that need to be resolved. About passing on the costs, why do these costs need to be so high? Regulation is the problem, not Uber.
Me: I’m all for competition, as long as the rules are applied equally. Put one boxer in a ring with an anvil tied to his leg and another without the anvil and you don’t have competition. These new services are clever ways of evading the rules, which puts their anvil laden competitors at a disadvantage. Maybe there’s an argument for unfettering the traditional cab companies, but let’s not pretend that Uber is out-competing anyone.
Object #2:
“Now, the reason for those rules may no longer be operative. [True] Those rules may be corrupted or have become corrupted. [True] We can’t know that Until we think about why the rules exist. [Inoperative]” We didn’t much think about it until Uber poked that bag and dollars and customer satisfaction began falling out. And it’s not Uber vs, the establishment.
Me: Regulation of taxi services goes back a long time. One reason was to crackdown on robbery. Another was to relieve pressure on public roads. In modern times, cab companies welcomed regulation for selfish reasons, but so did the public. In fact, the public demanded it. Having a clear way to distinguish legitimate services from less scrupulous operators was best done through licensing. Maybe that’s no longer necessary and I am open to that argument.
Objection #3:
I agree with you 99% of the time, but…..
“I’m fine with that just as long as all of the services pay their share of taxes and abide by the same rules. ”
very Disappointing Zman…….is that the cityboy in you coming out?
Me: I don’t get this at all. You cannot have a human society without taxes. Taxes pay for government, a necessary bit of civilization. How much government we have is debatable, but taxes are not. Tax revenues must be enough to pay for the desired amount of government. Otherwise, you get vastly worse corruption than anything you see with taxes.
Roads are a public good. We build them and maintain them with government. Ideally, each of us pays for what we use of public resources. You pay for water based on your usage and you should pay for your road based on usage. Big scary trucks pay more than bicycles. Taxis pay their share of road use through licensing fees. Figure out how to bill Uber drivers for their road use as we do taxis and everyone is on the same level.
How can you object to that?
Objection #4:
The Zman hates UBER.
I frankly don’t get this.
UBER is just a car service that you contact thru an app on your phone,
rather than thru a phone call.
To me, pretty much a distinction without a difference.
It’s just easier for the riders and more efficient for the drivers
This is no different than hating on Amazon because it destroyed the brick and mortar book store model. (Just as blogs destroyed the letters-to-editor model.)
Me: I have no opinion on Uber as a service. I’ve never had a reason to use it. I’ll also note that I never heard anyone ever state an opinion about taxi regulation until the last year. For a century people were fine with traditional cab service. Then a tax dodging hipster alternative comes along and everyone is fishing around for a reason to hate taxis.
As to the comparison to Amazon, that’s not complete nonsense. Amazon avoided paying sales taxes. That was certainly part of their appeal. They also had access to zero interest money. Oligarchs hate small business so they cheered as Amazon gutted traditional retail. Now that retail is dead, Amazon is back collecting sales taxes. There’s a lesson there.
Objection #5:
UBER lets ambitious drivers get out from under the thumb of the medallion cartel.
That sounds good to me.Before UBER, the yellow cabs had a monopoly and provided monopoly quality
service – just like dealing a certain well known cable company.How can the Zman not like the break-up of this monopoly?
Me: I have never once defended the current arrangements. Frankly, I don’t care. If the people of NYC want to have a North Korean style taxi department, that’s their business. I don’t like most of what Obama does in his job, but if someone created Uber for assassins, I’d be against that too. Civilized people have civilized, orderly ways of solving problems.
My observation about Uber is they are simply a sophisticated attempt to circumvent local self-governance. That I will always oppose as it is the road to fascism and tyranny. Taxi regulation in NYC may be a mess in need of reform. Tearing up the rule of law to reform taxi service sounds like bad trade to me.
Objection #5:
The idea that cities everywhere do the same thing–proof that government must be serving their citizens–has not been supportable since NYC did everything it could to keep Thomas Edison’s electric light safe from the gaslight monopoly. What governments of all shapes and sizes can be relied upon to do everywhere–except Sandy Springs, Georgia–is obey some irresistible urge to reach out and touch everything. If it moves, tax it, if it keeps moving, regulate it, and if it stops moving, subsidize it.
Uber, Lyft, Curb, Sidecar. They may all become MySpace because we cannot know the future. Who cares? Now that Uber has cracked that calcified wall of inertia things will work themselves out because markets do that, and not because of but in spite of the cab companies and regulators.
Me: That all sounds great, but my complaint is not addressed here or anywhere. If you have a leak in your roof, you will call a roofer. If the roofer, after inspecting your roof, tells you that the whole roof must be replaced, you will demand an explanation. If his reply is “the guy who put the roof on was a crook and terrible at roofing” you’re going to want some proof of that. You are going to want him to show he knows who did the roof, when he did it and so forth. In other words, he will have to demonstrate his knowledge of the subject.
On this issue, I want to someone to explain why we have these regs? When were they passed? What were they intended to address? What are the consequences of getting rid of the regs? What are potential downsides of deregulation? In other words, an affirmative argument always addresses both sides of the ledger.
I’ll also note that deregulation is a massive screw job to the guys playing by the rules. Here we have a system setup by the men with guns and you did everything you were asked. Now, all of a sudden the men with guns change the rules and make your investment worthless? That has to count for something too.
Objection #6:
Regulation is just a power grab in the name of “the general welfare.” It’s never been anything else.
Me: Not always. The lack of regulation is no walk in the park either. By now you should know I’m no utopian. I think human populations evolve their problem solving mechanisms over time and often they dead end or worse. Maybe taxi regulation has reached such a dead end. I don’t know and frankly I don’t care all that much.
My only objection to Uber is in pretending they are some sort of innovative job creator. That, I think, is nonsense. They are privateers cannibalizing an existing business that thought it had paid sufficient protection money to the men with guns to keep privateers under control. Calling Uber “disruptive” is like calling Bonnie and Clyde disruptive to banking.
As I’ve said, if NYC decides to crush Uber or stop providing protection to their clients, that’s none of my concern. My preference would be for the city to open it up to all comers and see what happens. Cell service does change a big part of the service so it is worth letting that run its course before killing or celebrating it.
Now, get off my back about Uber ya bastards!