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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.

19 of 136 comments (clear)

  1. Uber this Uber that by Anonymous Coward · · Score: 2, Funny

    Sigh.

    I'm so uber Uber "news".

  2. 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 Tokolosh · · Score: 2

      You were lucky. Las Vegas taxis are considered corrupt across the board.

      http://www.usatoday.com/story/...

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      Prove anything by multiplying Huge Number times Tiny Number
    2. 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.

    3. 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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    4. Re:Why don't taxis just provide good service?! by Just+Some+Guy · · Score: 3, Interesting

      In most jurisdictions the taxi companies have been subject to more rigorous (i.e. expensive) standards than Uber has been following.

      ...because they paid good money to write those laws. Taxi laws are a prime example of regulatory capture. For example, Company A got a sweet deal on credit card readers and they spent 2 years installing them in their cabs. Then, they tell the local regulatory body that credit card readers are a necessary public good and suggest that all taxis should have readers installed in a reasonable time frame - say, within three months. Finally, they laugh as their competitors scramble to shell out inflated prices for emergency rush orders on credit card readers so that they can stay in business.

      For another example, three companies get together for group bargaining with an insurance company: "if you give us a good rate, we'll guarantee that all of our cabs will carry your new expanded coverage." Once that deal's in place, they ask for regulations to require all taxis to carry that level of coverage. Of course, all other companies have to pay the un-negotiated rate and now they have a harder time competing.

      You don't get to write the laws and then bitch about them. Well, apparently you can, but you shouldn't be able to.

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      Dewey, what part of this looks like authorities should be involved?
    5. Re:Why don't taxis just provide good service?! by Solandri · · Score: 2

      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!

      The relative who was supposed to pick my family up from the airport couldn't make it because of a family emergency. We ended up having to take a taxi home. After we got home (about 40 miles) and paid the fare, out of curiosity we did a little research. It would've been cheaper to hire a limo for the hour our trip took.

  3. They also stopped the monorail to airport by Joe_Dragon · · Score: 5, Informative

    They also stopped the monorail to airport.

    1. Re:They also stopped the monorail to airport by Anonymous Coward · · Score: 2, Funny

      They also stopped the monorail to airport.

      We're twice as smart as the people of Shelbyville!

  4. Worst taxi experiences ever... by nefus · · Score: 3, Interesting

    Context of the story aside, my worst experiences with taxis have all been in Las Vegas. Being being asshats with lawyer ties to politicians, they are angry at their customers just for being customers. It has gotten to the point where I'd rather pay for a private car or take a hotel shuttle over a taxi any time we visit Las Vegas. I've been yelled at, my wife's bags tossed to the ground and just made really uncomfortable when dealing with them.

  5. 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.

    1. Re:Cool article... by Just+Some+Guy · · Score: 2

      One of the reasons Uber, Lyft and all the other "ride sharing" app companies get so much flack because they are breaking the law.

      I'd be more sympathetic if 1) Uber and Lyft were offering the same services as taxis (you can't flag down an Uber; you have to request one), and 2) many jurisdictions hadn't already ruled that you're wrong.

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      Dewey, what part of this looks like authorities should be involved?
    2. Re:Cool article... by Fnord666 · · Score: 2

      The taxi industry is regulated for very good reasons (one being safety)...

      The taxi industry is regulated for many reasons, a couple of them are even good reasons. The rest not so much.

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      'The tyrant will always find pretext for his tyranny.' - Aesop's Fables
  6. Newsflash! Uber news of the week. by Rotten · · Score: 4, Funny

    As many media outlets are commited somehow to spread the word about one but ONLY ONE of the many apps that promote illegal semipublic transport operating on no insurance or permits whatsoever. We bring this astonishing news about a city that tried to keep this illegal operation controlled and how a CEO complains about the big money involved and how they would love to have the government under their control.

  7. 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.

  8. Lingua Francas by sjbe · · Score: 2

    English is the closest thing we have to a universal language, even though it isn't one.

    Since even the most optimistic estimate of the number of speakers (including non-native) is around 500 million, you are talking about a language spoken by about 7% of the world's population. So no, it isn't even close to being a universal language. It is probably the closest thing the a lingua franca right now but it's no where close to universal. Hell there are more speakers of Mandarin than English albeit mostly in one country.

    It used to be German, but that fell out of favor for some reason, I can't imagine why.

    No idea where you got that idea. The Holy Roman Empire and Austro-Hungarian Empires used it and it's still quite popular but not much outside of Europe. Unless you are talking about Germanic languages in general which includes English. The world is a lot bigger place than Europe.

  9. Re:Be responsible for your own navigation by cbeaudry · · Score: 2

    You are really being a dick with your un-useful rebuttals.

    1. This thread is about Vegas, so asking drivers to speak clear English IS relevant;
    2. Being a Cab driver is a SERVICE, which is paid for by the customer;
    3. The service should be efficient and be a pleasant experience;
    4. Most people do not want to hear loud music (never mind from which country or which type) while they are riding in a taxi, the cabbie is on my dime (see point 2), he can listen to music when I get off;
    5. Most people do not want to hear a loud one sided conversation in ANY language while riding in a taxi, the cabbie is on my dime (see point 2), he can have a conversation when I get off;
    6. When you get into a cab, you pay for efficient transportation to your destination. The service price should include proper navigation, if I have to pull out my phone and be the GPS, then I'll charge you half the price back;
    7. GPS should be in every taxi in 2015, no exception, trying to defend the un-defendable is ludicrous;
    8. Rent a car? And pay all those hotel fees for parking and the valet service? Did you really just say that, for Vegas? The only time renting a car in Vegas makes ANY sense, is if you are NOT going on the strip;
    9. I dont want to get out and find a new cab, I want good service the first time, which is why I pay for it. This is WHY Uber and Lyft are getting traction, because the service is so utter shit at the moment. And that was the point of the OP, GET YOUR SHIT TOGETHER if you dont want competition;

    Not everyone travels the same way. The main point is, Taxi service is a paid service and if that industry wishes to remain relevant, they need to increase customer experience and quality of service. All your points where actually reinforcing the fact that the taxi services are shit, because your answer to everything was, Do it Yourself. In that case, Taxi's shouldnt exist, right?

  10. business model of giving more than they get back by k6mfw · · Score: 2

    ChrisJohnson posted this about Uber, I think it's insightful as I see many other businesses taking up this mode of operation to take advantage of Uber drivers:

    Quote:
    Sure, a bit. Uber's the same thing. It's designed to make maximum use of crazy people and force the others to live up to that standard or be fired.

    I'll define 'crazy Uber people' not as 'danger to customers', but 'people who are bringing more value in terms of vehicle, skill and desire to please, than they are getting back in pay and benefits'. So the crazy Uber person is the one who keeps buying a new Lexus or whatever, vacuums their car three times a day and busts their ass to outperform all the other Uber drivers, so they can continue to win out over anybody else seeking to be a driver.

    The key factor is that they are giving more than they get back, in the belief that they're cornering some kind of market or buying in to something important.
    [snip]
    Another way to be a crazy Uber person is to put more depreciation and wear and tear on your car than you can afford to repair (or replace). It's easy to be crazy in these ways. It's externalities which are easy to overlook. These Amazon/Uber business models are designed to leverage that kind of crazy as hard as possible, and kick out everybody who's not willing to lose (one way or another) on the deal. Psychology is useful in getting people to buy into this stuff.
    end quote

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    mfwright@batnet.com
  11. Re:Ugly Americanism by spire3661 · · Score: 2

    A cab ride is a BUSINESS transaction, i have no interest in learning anything from a cabbie.

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    Good-bye