Mayors of Atlanta & New Orleans: Uber Will Knock-Out Taxi Industry
McGruber writes Atlanta Mayor Kasim Reed and New Orleans Mayor Mitch Landrieu agree: there will a 15 round fight between Uber and the taxicab industry that currently enjoys regulatory capture, but after a long fight, Uber will win.
Landrieu says: "It actually is going to be a 15 round fight. And it's going to take time to work out, hopefully sooner rather than later. But that debate will be held.....But it is a forceful fight, and our city council is full of people on Uber's side, people on the cabs' side, and it's a battle." Mayor Reed of Atlanta also expressed how politically powerful the taxi cartels can be: "I tell you, Uber's worth more than Sony, but cab drivers can take you out. So you've got to [weigh that]. Get in a cab and they say, 'Well that mayor, he is sorry.' You come to visit Atlanta, they say, 'Well that Mayor Reed is as sorry as the day is long. Let me tell you how sorry he is while I drive you to your hotel. And I want you to know that crime is up.' This guy might knock you out. I want you to know it can get really real. It's not as easy as it looks."
Not really seeing a downside if the industry is this fragile. It's like claiming that lemonade stands will "knock out" the snapple industry.
"Have you ever thought about just turning off the TV, sitting down with your kids, and hitting them?"
Uber, Lyft, Sidecar etc. all avoid the enormous cost of Taxi Medallions (which are hundreds of thousands of dollars and in some places pushing 7 figures) -- PER CAB !!!!
However, circumventing medallions is not necessarily a bad thing considering the downsides of medallions.
If uber and lyft and the likes carried the same insurances and had the same background checks our drivers had then I welcome the competition but they don't. My company has multiple smartphone apps, GPS tracking, text to ride, and a fully staffed call center to handle bookings and complaints. We do have a logistical advantage that has made us the leader in our metro area. Lyft is here and not making a dent in our sales at all. The only complaint we have made is follow the laws that are in the books. Run meters and carry commercial passenger insurance.