Uber Gives Up On New York Taxi Service

An anonymous reader writes "Uber, the startup behind a mobile app for connecting transportation services with people who need rides, has halted its efforts to partner with New York cab drivers. They've been fighting an uphill battle against regulators, who have warned drivers that they could face fines or loss of license if they worked with Uber. The company's CEO wrote, 'Demand far out-stripped supply, making you feel pretty lucky when you got a yellow from your iPhone. We did the best we could to get more yellows on the road but New York's TLC (Taxi and Limousine Commission) put up obstacles and roadblocks in order to squash the effort around e-hail, which they privately have said is legal under the rules. We'll bite our tongues and keep our frustration here to ourselves.'" Update: 10/17 00:48 GMT by S : Here's TLC's perspective, in the words of Commissioner David Yassky: "In recent months, as e-hail apps have emerged, TLC has undertaken serious diligence and is moving toward rule changes that will open the market to app developers and other innovators. Those changes cannot legally take place until our existing exclusive contracts expire in February. We are committed to making it as easy as possible to get a safe, legal ride in a New York City taxi, and are excited to see how emerging technology can improve that process. Our taxis have always been on the cutting edge of technological innovation, from GPS systems to credit card readers."

Comments

Just goes to show

[Scutter]

There's no efficiency improvement or human betterment that can't be completely destroyed by bureaucracy and greed.

Re:Just goes to show

[girlintraining]

There's no efficiency improvement or human betterment that can't be completely destroyed by bureaucracy and greed.

Of course, you forget that the reverse is true: Destroying bureaucracy and greed results in efficiency improvement and human betterment. So if the NY Taxi Commission is no longer serving the public interest the general public should tell them to take a long walk off a short pier. There is no law or police force that can contend with half a million angry New Yorkers surrounding the commissioners and telling them it's time for them to leave town. And of all the things that piss of New Yorkers, things that obstruct the free flow of traffic ranks right up there with the coffee machine breaking. So... where are the angry New Yorkers?

Ah well, these are the same people that let a bunch of crooked cops and bureaucrats chase the Occupiers out, and happily let the government encase their entire downtown in giant walls with mounted machine guns... so I suppose thinking they'd actually organize to defend their own interests from a few dudes in suits is probably too much to ask. Unless those dudes are in an airplane and carrying boxcutters, New Yorkers just don't have the balls to say or do anything anymore.

[Reverse psychology, bitches]

Re:Just goes to show

[BlueStrat]

Just goes to show you that people forget their history.

Here's a clue about the history bureaucracy: Once upon a time it was considered to be the efficient way to better human society, the way that would remove obstructions yet prevent abuses.

Perception changes, huh?

You'd better check history again. Bureaucracy has always been a necessary evil that needs to be kept heavily restricted and overseen in it's power and budget, as like with governments as a whole, they always grow and expand over time, eventually causing collapse/chaos/tyranny if left unchecked.

The problem in the US is that we keep choosing to cede more and more power over ever more things and give larger and larger budgets to the bureaucracy to "fix it".

This is typically followed up, after it's evident that things didn't get fixed but got worse, with cries to cede even more power and give even larger budgets, because the reason for the failure to fix things was that the previous increases were not quite enough, we'll fix it this time, promise! Rinse and repeat.

Strat

Re:New York New York

[FranTaylor]

Ever noticed that these "liberal outposts" are where the vast majority of our commerce and business are done?

Re:While I like the idea

[gewalker]

Thank the government / crony capitalism duo . Taxi medallions are now worth 1 million $ in NYC these days. Slate had a good article on the situation. If taxi prices were set by the market, you would save a bunch, and they would be likely to support Uber as they might see a competitive advantage in doing so.

Re:Message from the free market

[FranTaylor]

The "free market" neglects to take account of the SHEER NUMBER OF VEHICLES in NYC

More taxis will SLOW THINGS DOWN FOR EVERYONE

Have you DRIVEN in NYC? Do you REALLY assert that things would go smoother with MORE CARS?

Uh, they have a reason to protect the status quo

[Virtucon]

Taxi Commissions everywhere don't like Uber. In DC recently, Uber has had to defend its practices because the DC Taxi Commission who is out to get rid of them. Why? You have to get a license to operate in DC and that means revenue for them.

So that's just in DC, where most of the "regulated" cabs are broken down piles of crap that usually don't have A/C in the summer and have tons of other issues.

Now, New York? well New York allows a monopoly on hired car services whether it be hired cars (limos) or Taxis. New York says it's to "regulate" theses business so they don't overcharge and so that the streets are not overrun by cabs, of course that would mean competition and drive down prices. What the city really wants to do is keep getting all those fees and regulations to keep coming at you. Let's see you apply, have to take a test then 80 hours of training then a medical test, then pee in a cup. All of that generates jobs and it's considered necessary to be allowed to drive in a New York Taxi with a hack license. Now if you want to own your own cab, that's more fun. If you want a medallion be prepared to pony up big time and all it does is make cab fares higher and squeeze the guy who's trying to make a living. Try a million dollars for a medallion. What that does is create a monopoly on service and New York likes that...

Oh and you have to have a medallion if you want to be able to pick up passengers in response to a street hail. http://en.wikipedia.org/wiki/Taxicabs_of_New_York_City

So, Uber comes along and wants to shake things up and make it easier for suppliers and consumers to link up? Do you think New York is going to allow this when it's so lucrative and bureaucratic all at the same time? Not in this life pal.