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

[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:Just goes to show

[artor3]

The reason Uber isn't being allowed in NYC is because there are some pre-existing contracts that prohibit them. Those contracts will expire in a few months (February of next year), at which point we can negotiate new contracts that allow Uber in.

Is your position that we should just tear up contracts whenever we no longer feel like they're benefiting us? Because that would spell the end of the civilization that you love to take for granted.

According to a statement from TLC Commissioner David Yassky, existing "exclusive contracts" are the reason that Uber can’t use cabs in the city.

Those contracts are part of the Taxicab Passengers Enhancement Project (TPEP), which provides various hardware including GPS data collection, credit card processing and two-way messaging with drivers. Under the TPEP system, Creative Mobile Technologies and VeriFone have an exclusive contract to provide such infrastructure and services to the TLC.

But Yassky added that these contracts are set to expire in February 2013 and will help the agency move "towards rule changes that will open the market to app developers and other innovators."

Re:New York New York

[MickyTheIdiot]

What bullshit. It's two sides of the same coin. It's just a different group of items to ban or a different group to oppress.

Re:While I like the idea

[StandardDeviant]

Hahahaha. Have you ever visited NYC, let alone lived there? Getting a cab can be a pain in the ass even in mid-town. "Oh, look the 500th fuckin cab that's full or off duty! Might as well stand here with my arm in the air for another twenty minutes like a fucking tourist!"

The MTA may get you where you want to go, but might take two hours to do it. JFK to BX w/out MNR, anyone?

Seriously tell me hailing a cab is easy after you've tried to do it while standing in the snow an hour after bars close and you don't want to take three more God-forsaken hours to get home to an outer borough shithole apartment that costs $waytoofuckinmuch... Not that I'm bitter. :)

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:While I like the idea

[ThatsMyNick]

Nope. What we are asking for is to get rid of these stupid medallions (not right now, when the contracts or whatever expire). Create a real free market of taxi companies competing with each other. Atleast of them would ready embrace Uber.

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.

medallions look like a "bubble" waiting to burst..

[NotQuiteReal]

First off, people need to know that being a legit cab in NYC costs a million bucks.

The referenced article argues that "hey it is a decent 5% return on your investment"... sounds like a typical wall street tout pumping a stock. A "5% return" on an investment wouldn't require you to work 8 hours a day to get it.

Based on complaints of availability, the denial to use modern apps, the spike in that graph of medallion licenses... something is going to "pop".

I have no idea what I am talking about. I live in California and get pissed off if the driveways to the acres-large parking lots I use are not conveniently aligned for my use...