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Sex, Drugs, and Transportation: How Politicians Tried To Keep Uber Out of Vegas

HughPickens.com writes: Johana Bhuiyan has written an interesting article about how the Las Vegas taxi industry used every political maneuver in its arsenal to keep Uber and Lyft off the strip. Vegas is one of the most lucrative transportation markets in the country, with some 41.1 million visitors passing through it annually. The city's taxi industry has raked in a whopping $290 million this year to date (PDF). What made Vegas unique — what made it Uber's biggest challenge yet — was the extent to which local governments were willing to protect the incumbents. According to Bhuiyan, in Las Vegas, Uber and its pugnacious CEO Travis Kalanick really did run into the corrupt taxi cartel bogeymen they'd long claimed to be saving us from, and this cartel would prove to be their most formidable opponent. But when push came to shove and the fight turned ugly, the world's fastest-growing company ran right over its entrenched opposition.

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  1. Why don't taxis just provide good service?! by Anonymous Coward · · Score: 4, Insightful

    What I don't get is why taxi services don't just provide good service. If they really want to crush Uber, that's all they need to do. It shouldn't be hard or costly to do, either.

    They could start with these changes, which would make a world of difference:

    1. Ditch the third-world drivers. It's frustrating dealing with taxi drivers who don't know where they're going or what they're doing, since they only arrived in the country a month before. It's also frustrating when they can't speak or understand English, which is the international language of the travel industry worldwide, especially in countries that are natively English-speaking. And it's utterly disrespectful when they spend the whole trip chattering loudly on their phones or headsets in Arabic or some other obscure language the entire trip. Instead, they should hire locals who know the area, who know the local language (plus English, if they differ), and who won't treat the customers like utter shit.

    2. Charge reasonable fares. A $6 starting fare, plus $8/mile after that, plus $1 for every 5 seconds idling at a light makes short taxi trips unbearably expensive, and it makes medium and long voyages pretty much impossible. The rates are excessive even if they were providing excellent service. But as we saw in the first point, the taxi customers are paying top dollar for third-world service. Short trips should be competitive with public transit fares. Longer trips should still be within reason. If an airline charges $800 to fly thousands of miles, it should not cost $100 to take a taxi just a few miles to get to the airport to catch that flight!

    3. Never refuse rides. Despite even short rides costing the customer a lot of money, it's still not uncommon for taxi drivers to outright refuse to drive customers because their trip is too short, or may take the driver to say a residential area where there won't likely be other fares to pick up afterward. Pick up the customer promptly, drive the customer to where the customer wants to go, and don't bitch about it.

    4. Stop resorting to third-world harassment tactics. This is also tied in with the first point, but we've seen many taxi drivers in Western cities around the world continually resort to really pathetic third-world harassment tactics in their fight against Uber. That's not how business should work in Western nations! If you can't keep up with your competitors, then you go out of business. You don't resort to criminal or quasi-criminal behavior. It just makes you look sleazier and shittier than you already look when you do stuff like that! So don't go blocking major roads. Don't go attacking Uber vehicles with passengers in them. Don't go attacking normal, non-Uber vehicles where the one passenger just happens to be sitting in the back instead of the front.

    They should start with those four basic things. Even then, they all boil down to: don't treat your customers like shit, and don't subject them to a shitty experience.

    Uber is only a threat to taxi services that provide shitty service. Uber really offers no advantages beyond taxi services that provide good service. It's not like the customers really give a fuck how they get from here to there. They just don't want to be subjected to the shitshow that taxi drivers have typically subjected them to. If taxi drivers just did a good fucking job for once, then Uber couldn't do a thing to them.

    Fuck, these taxi services might even see an increase in business, and profit, if taxi rides started to become known as something convenient and enjoyable, rather than the third-world screw job they tend to be these days.

    1. Re:Why don't taxis just provide good service?! by tpwade · · Score: 5, Insightful

      There's more to it than that. In most jurisdictions the taxi companies have been subject to more rigorous (i.e. expensive) standards than Uber has been following. For example, the taxi companies are regulated as to what what cars can be driven, the quality and inspection of those cars, insurance level, background checks, fee control, artificial scarcity of operating licenses (eg New York Taxi medallions) etc. All of these add to the cost of operating a conventional taxi business, and are things that Uber has been ignoring under its completely bogus "we are not a taxi company" claim. I am glad Uber is coming in to shake things up because a number of the above are simply there to protect a monopoly or outdated business model and desperately need revision. BUT Uber IS (or at least in just about every meaningful way behaves as) a a taxi company that is simply ignoring the regulations and is thus undercutting the competition and this is fundamentally not fair either.

    2. Re:Why don't taxis just provide good service?! by Shoten · · Score: 4, Insightful

      The airport is within a mile of the casinos how much can you reasonably charge for what amounts to a few minutes ride. Vegas was purpose built for travelers the airport and main attractions are all grouped together.

      Um...I don't think Uber charges less. Just sayin'.

      The issue here is demand and supply. There are X number of taxis, the streets can carry Y number of cars (anyone who's been to Vegas in the last decade or two knows what I'm talking about here) and there are Z number of people...many of whom are drunk, out of control, depressed because they just lost their next three mortgage payments at the roulette table, or in other states of unruly/headache/disaster.

      I would wager (no pun intended) that being a cab driver in Vegas carries challenges and problems that aren't found in other cities. Sure, you get a degree of batshit crazy in New Orleans around Bourbon Street, but Vegas is like dozens of square miles of Bourbon Street, filled with millions of people acting accordingly who range from sane and sober to...well, there's a reason the "Hangover" movies take place in Vegas.

      I've cabbed in Vegas a lot over the years, and I've always found the cabs to be clean and in good shape, the drivers (with one exception out of a long list) to be polite and capable, and the fares consistent. I've never been taken on a long ride, and I've actually gotten a lot of good information from the drivers about going-ons in the city. I'm a huge fan of Uber, but Vegas is one place that, to me, isn't screaming for a replacement option as much as other cities.

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  2. Cool article... by MrVictor · · Score: 5, Insightful

    ...other than the fact that it's one-sided bullshit.

    One of the reasons Uber, Lyft and all the other "ride sharing" app companies get so much flack because they are breaking the law. The taxi industry is regulated for very good reasons (one being safety) and all the "ride sharing" app companies blatantly ignore them. This, in turn, infuriates the traditional taxi industry that follows regulations and sees them as unfair competition.

    The other reasons for the controversy revolves around some pretty awful labor exploitation but that's a whole nother story.

  3. Ugly Americanism by sjbe · · Score: 1, Insightful

    While I agree with your thesis that cab companies often provide shitty service for an outrageous price, I think you are wrong a few points.

    It's frustrating dealing with taxi drivers who don't know where they're going or what they're doing, since they only arrived in the country a month before.

    In the age of GPS this should be a non-problem. And frankly while I don't take cabs often I've NEVER run into a cab where the guy got off the figurative boat a month before. Maybe it does actually happen but I think that is more of an urban legend than anything else. More likely it is just the arrogant and often racist assumption that anyone who doesn't have English as their first language must have just gotten to the country 5 days prior.

    It's also frustrating when they can't speak or understand English, which is the international language of the travel industry worldwide, especially in countries that are natively English-speaking.

    English is NOT a universal language or anything close to it and certainly isn't the "international language of the travel industry worldwide". While it is among the more commonly spoken languages more of the world doesn't speak English than does. I've traveled quite a lot in places where not a word of English is spoken. The assumption that everyone should speak English is ignorant and arrogant and if you honestly believe that then you are a jerk. This is the sort of ugly-american stuff that gets us such a bad reputation. In the US, yes you should be able to speak English and in some areas Spanish is helpful too. Elsewhere different rules apply. If you cannot communicate with your driver then GET OUT and get a new cab. If you are offended at an accent then you are just being a douche.

    And it's utterly disrespectful when they spend the whole trip chattering loudly on their phones or headsets in Arabic or some other obscure language the entire trip.

    What do you care what language they are "chattering" in? Disrespect is a matter of opinion and perspective and local custom. I don't see that as disrespectful at all. Unprofessional in some cases but not disrespectful. Personally I don't care at all if the cabbie wants to entertain himself as long as he gets me where I want to go quickly and efficiently. I don't really want to talk with them anyway so what do I care? The only time I care is if I interrupt the driver I expect him to drop whatever he's doing and pay attention.

  4. Good thing we have choices! by HalAtWork · · Score: 4, Insightful

    Well the great part is now we have choice! Customers concerned with driver screening and safety can take taxis. Customers who are not can throw caution to the wind. What I don't get is people who *want* a monopoly either way. Of rather have competition and choice, so even if I never use Uber or Lyft, I'm glad they exist.