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NYC Taxi Commission Nixes Cab-Hailing Apps
An anonymous reader writes "Uber is a company that creates apps to connect taxi and limo drivers with potential passengers. They've been rapidly expanding their service to cities across the country, but they're now getting pushback from New York City. This week the NYC Taxi and Limousine Commission issued a public notice saying, 'A driver must not use any electronic communication device (PDF), including a cell phone or smartphone running a hail or payment app, while operating a taxicab.' The commission says its current contractual obligations forbid the use of such technology."
NYC has a different types of cabs and they all have different rules on picking up.
Yellow is street hails
Then there limo services where you call them to schedule a pickup. Not real limos but that's what they are called
I think there are one or two other kind of medallions as well
The medallions are owned by Regular people and very expensive so there are lots of interests in keeping the system as it is
This is all about turf wars between limo services and cab services in NY. Basically a cabbie in new york, according to regulations, HAS to stop for anybody that hails them. Where as a limo service is appointment only and CAN'T stop to pick people up on the road ... they have to only pick up the appointment.
So bascially, this app makes cabbies into a pusedo limo service. They by pass people on the street hailing them, and go pick up the appointment.
There is a bunch of noise about discrimination against people without smart phones ... but what is boils down to is, once again, government regulations stopping free enterprise. They need to drop this silly non-sense about limo service vs taxi service.
The article says it's because their current contract with their payment processor gives them exclusivity until February. In February, the ban will no longer be in effect, and they'll be free to experiment with new payment systems and taxi-related phone applications that accept payments.
And yes, I know I cheated. I knew I wasn't supposed to read the article, but I just couldn't help myself.
Dude, the call center IS the taxi company. When it's replaced by an app, licensed cab drivers could use their own taxi and keep the full fare. Someone will have to figure out how to handle taxes though.
Yes and no. In NYC to operate a taxi legally you need a medallion on the cab. The current prices for the medallions run about $1 million and as such the industry is heavily concentrated among just a few operators who then lease the medallion to the driver (at a price of roughly $130 per 12 hour shift). Getting rid of the call center would not change the dynamics of the industry at all since the medallion regulation defines the industry more than the call center.
At least in NYC. Cities without medallions like DC it would definately effect them, but the cities without medallions already have large numbers of owner operates (and have a completely different set of problems).
I'd say RTFA, but since not even the editor or submitter seems to have done so, it's seems a little lame. Suffice to say that this is not a new regulation banning Uber, but simply a memo reminding cabbies that they're not supposed to use cell phone apps while driving.
Except it isn't a small minority. Its the majority. In 2010, it was estimated that 58 percent of all workers in the US were earning minimum wage. http://www.bls.gov/cps/minwage2010.htm [bls.gov]
From your own source:
3.6% isn't even close to 60%.