Taxi alternative Uber faces legal hurdles
Hailing a taxi in San Francisco can be nearly impossible if you’re not downtown. Calling ahead isn’t a guarantee either – often, the cab is late and sometimes it never comes.
So, of course, there’s an app for that. A smartphone app called Uber is trying to solve this problem by using GPS to match town cars and taxi cabs with people who need rides. The app figures out where you are, shows the cars near you, and sends the first free one over. You pay with a credit card on file, and the charge includes a tip.
Since 2010, the company has launched its service in 23 cities around the world. It contracts with car companies and individual drivers, and gives them free iPhones to run its software. But it doesn’t go through traditional licensing channels – and that’s where it’s running into trouble. Here in San Francisco, it’s faced heated opposition – from taxi drivers who say they’re being cheated out of fares to city officials worried about regulations and safety.
An Uber dilemma
I stood on the corner of 48th and Cabrillo, and with no cab in sight I opened the Uber app on my phone. It was eight minutes from the time I pulled out my phone to the time my Uber car showed up. Half an hour later, I arrived at the 16th and Mission Bart station in style – $50 worth of style, actually. I got the email with the credit card charge, a few minutes later.
Now, I did take a town car, instead of the cheaper yellow cab option. It was the closest car when I requested my ride. And we did hit some rush hour traffic. Still, that’s a pretty big chunk of change for a drive through the city, but maybe the convenience is worth it. Uber’s tens of thousands of San Francisco customers seem to think so. I decided to repeat my ride – same time, same corner – but this time, just calling a regular cab.
And instead of seeing a car rushing to pick me up, I got stuck on hold.
Two years ago, Ilya Abyzov found himself in a very similar situation to mine. He had just moved to San Francisco from New York. It was late.
“And I found myself sort of stumbling out of a karaoke place at 2am in Japantown and wanting to go home to the mission, and my prospects were either to walk for half an hour or to seek alternatives, because there were no taxi cabs around,” Abyxov remembers.
Uber got him home that night.
“I thought it was amazing,” he says.
So amazing that he applied for a job with the company, and now is the general manager of Uber’s San Francisco operations. Clearly, Abyzov is a fan, but he says Uber fills a real need in the city.
“There’s a lot of excess demand for transportation that cabs can’t fulfill,” says Abyzov.
In most cities, the taxi industry is heavily regulated – it’s considered part of the transportation network. San Francisco is no exception. Part of the reason Uber is so efficient is that it sets up shop first, and asks official permission later, essentially skirting a lot of those regulations. The company has been expanding rapidly, though, and it recently hit legal walls in several cities. Here in SF, two local taxi drivers are suing Uber. Last month, the California Public Utilities Commission slapped Uber with a $20,000 fine, calling its rule-bending “a matter of public safety.”
City officials are concerned about safety as well. Christiane Hayashi is in charge of the taxi division at San Francisco’s Municipal Transportation Agency (MTA).
“We make sure that a San Francisco taxi driver has a shown us a ten year driving history, as well as a criminal background check to make sure that there is no crime in their background that would them dangerous when they are alone in a vehicle with somebody,” explains Hayashi.
Uber says it’s just a middleman: a tech company that helps people find cars, but not a car service itself. Still, Ilya Abyzov says the startup does take safety seriously – and that it verifies whether all its drivers are licensed and have insurance.
“We only work with people who satisfy those conditions, we gather and track all those documents, and we verify their compliance,” says Abyzov. “So I think the biggest misconception about Uber is that we’re going rogue, but really we’re working with entirely regulated entities.”
MTA’S Hayashi says she doesn’t buy it.
While it’s not yet clear how the legal cases will shake out, the idea of Uber – or something like it – seems to have taken hold.
San Francisco already has an app that helps people find available parking, using data provided by the city. MTA’s Christiane Hayashi says it’s a model San Francisco is embracing: “I think that’s the next step in making this technology really effective, to get all the city’s taxis in one sort of data stream that then private application developers can use to make taxi service more reliable.”
In other words, to make all the city’s cab information available to companies like Uber, but to keep control over what that information is, and how it’s used.
Steve Webb is a taxi driver in San Francisco. He’s been driving his cab for 25 years. It’s how he put his daughter through college. He shares some of the city’s worries about Uber’s safety, but he says his biggest problem with Uber is something he thinks will bring them down: the price.
“I’ve had numerous people tell me they were standing on a corner, they were very very cold, there was four of them, and Uber charged them sixty dollars for a $12 cab ride.”
That sounded familiar. I asked Webb what he thought of my $50 ride from Ocean Beach to the Mission. He guessed that would have been a $14 meter.
I did my own calculations based on the cab fares listed on the MTA website. Taking traffic into account, it looks like that cab ride would have cost me more like $20 or $25. Unfortunately, I never got to test either calculation with a real ride, because the cab I called from the Outer Richmond never showed up. Instead of forking over another $50 for an Uber car, this time, I took the bus.