# Why isn't Uber regulated as a taxi service? **URL:** \ **Category:** Factual Questions\ **Created:** [June 16, 2015, 2:25pm UTC](https://boards.straightdope.com/t/why-isnt-uber-regulated-as-a-taxi-service/722673 "2015-06-16T14:25:51Z")\ **Posts on this page:** 20\ **Page:** 2
**Author:** ![Diceman](https://avatars.discourse-cdn.com/v4/letter/d/22d042/32.png) [@Diceman](https://boards.straightdope.com/u/Diceman)\ **Post date:** [June 16, 2015, 5:19pm UTC](https://boards.straightdope.com/t/why-isnt-uber-regulated-as-a-taxi-service/722673/21 "2015-06-16T17:19:39Z")
> [@ralph124c](#): > > Uber is NOT a taxi company. It is a booking company. All of the risk in Uber is borne by the vehicle owner and the passengers. That is what is scary-one accident and the driver can lose all of his assets (Uber only provides a $50,000 insurance policy). Someday, there will be a major scandal over this. So, what differentiates a “booking company” from a taxi service? Aren’t most taxis owner-operated? ---
**Author:** ![Diceman](https://avatars.discourse-cdn.com/v4/letter/d/22d042/32.png) [@Diceman](https://boards.straightdope.com/u/Diceman)\ **Post date:** [June 16, 2015, 5:23pm UTC](https://boards.straightdope.com/t/why-isnt-uber-regulated-as-a-taxi-service/722673/22 "2015-06-16T17:23:14Z")
> [@sitchensis](#): > > I think insurance is the biggest issue. Not the threat of being kidnapped or robbed. Uber drivers are operating a for profit business out of their cars without the overhead of commercial licenses, bonds and insurance. That might not be the biggest concern in the US, but in many parts of the world, stepping into an unlicensed taxi can be a Darwin Award-level of foolishness, especially if you’re obviously a foreigner. ---
**Author:** ![Really\_Not\_All\_That\_Bright](https://avatars.discourse-cdn.com/v4/letter/r/e8c25b/32.png) [@Really\_Not\_All\_That\_Bright](https://boards.straightdope.com/u/Really_Not_All_That_Bright)\ **Post date:** [June 16, 2015, 5:24pm UTC](https://boards.straightdope.com/t/why-isnt-uber-regulated-as-a-taxi-service/722673/23 "2015-06-16T17:24:48Z")
> [@Diceman](#): > > So, what differentiates a “booking company” from a taxi service? Aren’t most taxis owner-operated? Yes, but the taxi service is generally liable to passengers and third parties for injuries and what not. Uber may or may not be (and generally takes the position that it isn’t.) ---
**Author:** ![Amateur\_Barbarian](https://avatars.discourse-cdn.com/v4/letter/a/59ef9b/32.png) [@Amateur\_Barbarian](https://boards.straightdope.com/u/Amateur_Barbarian)\ **Post date:** [June 16, 2015, 5:28pm UTC](https://boards.straightdope.com/t/why-isnt-uber-regulated-as-a-taxi-service/722673/24 "2015-06-16T17:28:19Z")
> [@Diceman](#): > > So, what differentiates a “booking company” from a taxi service? Aren’t most taxis owner-operated? It shoves off almost everything about actual fulfillment and liability to the individual drivers. Which is how most “tech genius” innovations work - by cherry-picking the easy part, “inventing” some incredible Linux-based “solution” for it, and leaving all the hard parts and risk to someone else. ---
**Author:** ![Really\_Not\_All\_That\_Bright](https://avatars.discourse-cdn.com/v4/letter/r/e8c25b/32.png) [@Really\_Not\_All\_That\_Bright](https://boards.straightdope.com/u/Really_Not_All_That_Bright)\ **Post date:** [June 16, 2015, 5:30pm UTC](https://boards.straightdope.com/t/why-isnt-uber-regulated-as-a-taxi-service/722673/25 "2015-06-16T17:30:10Z")
Huh? Most “tech genius” innovations work by establishing proof of concept with a small market trial and then being sold to MicroFaceYahoogle. ---
**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\ **Post date:** [June 16, 2015, 5:33pm UTC](https://boards.straightdope.com/t/why-isnt-uber-regulated-as-a-taxi-service/722673/26 "2015-06-16T17:33:33Z")
> [@Snowboarder\_Bo](#): > > We kicked them out of Nevada because they refused to play by the rules. \*The rules \*being that the “regulated” Taxi cabs get to rip off all the tourists coming from the airport? :rolleyes::mad: ---
**Author:** ![Amateur\_Barbarian](https://avatars.discourse-cdn.com/v4/letter/a/59ef9b/32.png) [@Amateur\_Barbarian](https://boards.straightdope.com/u/Amateur_Barbarian)\ **Post date:** [June 16, 2015, 5:53pm UTC](https://boards.straightdope.com/t/why-isnt-uber-regulated-as-a-taxi-service/722673/27 "2015-06-16T17:53:17Z")
> [@Really\_Not\_All\_That\_Bright](#): > > Huh? Most “tech genius” innovations work by establishing proof of concept with a small market trial and then being sold to MicroFaceYahoogle. No, that’s those innervayshuns that work entirely between two or more displays. The ones that involve going out into the scawy weal wuhld tend to be independent or owned by a company that understands the real world exists. (And knows how to exploit old tricks with new wrinkles.) > [@DrDeth](#): > > \*The rules \*being that the “regulated” Taxi cabs get to rip off all the tourists coming from the airport? :rolleyes::mad: You fly into Reno or LV, you’ve signed away your rights as anything but a walking wallet. ---
**Author:** ![iiandyiiii](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/iiandyiiii/32/7924_2.png) [@iiandyiiii](https://boards.straightdope.com/u/iiandyiiii)\ **Post date:** [June 16, 2015, 5:57pm UTC](https://boards.straightdope.com/t/why-isnt-uber-regulated-as-a-taxi-service/722673/28 "2015-06-16T17:57:02Z")
> [@Snowboarder\_Bo](#): > > In what way are they “a low-cost alternative to taxis” such that they are not, in fact, taxis? 😕 > > I’ll answer for you: Uber cars are taxis. > > And since they are taxis, why should they be free to operate without regulation when taxi companies that call themselves taxi companies are not free to operate without regulation? They’re not metered and they can’t be hailed on the streets, so they’re different from traditional taxis in at least two significant ways. I’m looking at it from a pragmatic societal view – how is a society served better by no Uber (if Uber is regulated the same way as taxis) than by Uber as it currently operates in, say, Arlington VA? Other than their competitors (taxis), who is hurt? Riders and Uber drivers are helped. I’ve seen no evidence that Uber drivers are significantly more dangerous than taxi drivers. Many cab drivers have already joined Uber and use it to supplement their income. Seems to me that regulating Uber as if they are taxis hurts society more than not doing so. If it’s unfair, then I think the best option would be to lessen the regulations on taxis, not to regulate Uber. ---
**Author:** ![ralph124c](https://avatars.discourse-cdn.com/v4/letter/r/8797f3/32.png) [@ralph124c](https://boards.straightdope.com/u/ralph124c)\ **Post date:** [June 16, 2015, 6:00pm UTC](https://boards.straightdope.com/t/why-isnt-uber-regulated-as-a-taxi-service/722673/29 "2015-06-16T18:00:52Z")
> [@Diceman](#): > > So, what differentiates a “booking company” from a taxi service? Aren’t most taxis owner-operated? Uber owns no taxis, it merely brings together buyer and seller (of transport services). Therefore, it has no liability. Like i say, it seems like Uber is going to get into trouble some day. ---
**Author:** ![Amateur\_Barbarian](https://avatars.discourse-cdn.com/v4/letter/a/59ef9b/32.png) [@Amateur\_Barbarian](https://boards.straightdope.com/u/Amateur_Barbarian)\ **Post date:** [June 16, 2015, 6:03pm UTC](https://boards.straightdope.com/t/why-isnt-uber-regulated-as-a-taxi-service/722673/30 "2015-06-16T18:03:31Z")
> [@iiandyiiii](#): > > Seems to me that regulating Uber as if they are taxis hurts society more than not doing so. If it’s unfair, then I think the best option would be to lessen the regulations on taxis, not to regulate Uber. List all the regulations on taxis you think are unfair, unproductive, unnecessary or don’t apply to services like Uber and Lyft. Fair warning, if it isn’t already clear: I’ve found that most of these “brand new, completely different, by REAL people for all the people, f\*ck thuh Man” alternatives that blithely dismiss rules, regulations, licensing, insurance and common sense tend to work on wishing real hard and pretending a lot of hard realities don’t exist. Most find out otherwise and either fold or become a virtual copy of what they set out to replace, because the original was like that because of decades of trial-and-error shaping. ETA: And every one of these new-world services or ideas works _perfectly_… as long as it’s only a limited set of true believers involved. So scaling it up to the real world is trivial, right? ---
**Author:** ![Really\_Not\_All\_That\_Bright](https://avatars.discourse-cdn.com/v4/letter/r/e8c25b/32.png) [@Really\_Not\_All\_That\_Bright](https://boards.straightdope.com/u/Really_Not_All_That_Bright)\ **Post date:** [June 16, 2015, 6:05pm UTC](https://boards.straightdope.com/t/why-isnt-uber-regulated-as-a-taxi-service/722673/31 "2015-06-16T18:05:45Z")
> [@ralph124c](#): > > Uber owns no taxis, it merely brings together buyer and seller (of transport services). Therefore, it has no liability. Like i say, it seems like Uber is going to get into trouble some day. They _say_ they have no liabilty, but that does not make it so. In practice, Uber is an integral part of the transaction. They collect the payment, for one thing. ---
**Author:** ![Cheesesteak](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/cheesesteak/32/3694_2.png) [@Cheesesteak](https://boards.straightdope.com/u/Cheesesteak)\ **Post date:** [June 16, 2015, 6:12pm UTC](https://boards.straightdope.com/t/why-isnt-uber-regulated-as-a-taxi-service/722673/32 "2015-06-16T18:12:26Z")
> [@Amateur\_Barbarian](#): > > List all the regulations on taxis you think are unfair, unproductive, unnecessary or don’t apply to services like Uber and Lyft. Here’s one from my hometown: > [@](#): > > 313-13. Number of taxicab, livery and limousine licenses. > A. The number of taxicab licenses and medallions outstanding shall not at any time exceed 45. > The number of livery and limousine licenses outstanding shall not at any time exceed 50. and > [@](#): > > Each taxicab is also > required to carry a medallion issued by the police department bearing the name of the Township, > Expiration date of license, and Taxi medallion number be affixed to the hood of each taxi vehicle. > Medallions will be bolted to the vehicle by representatives of the Montclair Police Department; > however the taxi owner is required o provide the necessary hole to mount the medallion. Once > mounted on the vehicle the medallion can only be removed by a representative of the Montclair > Police Department. Medallions are transferable only with the consent and approval of the Chief > of Police and Township Manger and may only be transferred together with the taxi license. Let’s see: Unfair - Check Unproductive - Check Unnecessary - Check ---
**Author:** ![Sunspace](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/sunspace/32/1250_2.png) [@Sunspace](https://boards.straightdope.com/u/Sunspace)\ **Post date:** [June 16, 2015, 6:18pm UTC](https://boards.straightdope.com/t/why-isnt-uber-regulated-as-a-taxi-service/722673/33 "2015-06-16T18:18:27Z")
Uber has demonstrated a superior booking system. Why on earth don’t traditional taxi companies jump to use this? As it is, while the insurance/regulatory/ etc concerns are real, it also looks like the oldline taxis are using regulation to fight a new and disruptive business model instead of actually competing with it. It reminds me of Napster and the music industry; eventually, some taxi company will be Apple and ‘legitimize’ the booking service… ---
**Author:** ![Cleophus](https://avatars.discourse-cdn.com/v4/letter/c/a88e57/32.png) [@Cleophus](https://boards.straightdope.com/u/Cleophus)\ **Post date:** [June 16, 2015, 6:21pm UTC](https://boards.straightdope.com/t/why-isnt-uber-regulated-as-a-taxi-service/722673/34 "2015-06-16T18:21:51Z")
> [@ralph124c](#): > > Uber owns no taxis, it merely brings together buyer and seller (of transport services). Therefore, it has no liability. The substance of this is straight out of Uber PR. It’s not actually believable. Uber is the customer face of the service. You download the Uber app, log in to the Uber service, press “Request Uber” in the app, and so on. Payment goes to Uber Technolgies and if you have an issue with the service you go back to Uber customer support. You can’t request particular drivers or car models or anything that would allow individual drivers to market themselves specifically. If any of those were how the service works their claim of simply being a networking service could be plausible. ---
**Author:** ![Amateur\_Barbarian](https://avatars.discourse-cdn.com/v4/letter/a/59ef9b/32.png) [@Amateur\_Barbarian](https://boards.straightdope.com/u/Amateur_Barbarian)\ **Post date:** [June 16, 2015, 6:27pm UTC](https://boards.straightdope.com/t/why-isnt-uber-regulated-as-a-taxi-service/722673/35 "2015-06-16T18:27:10Z")
If you don’t understand the economics and civic benefits of limiting the number of taxi licenses, you don’t understand enough about the business to have an opinion. Seriously. Unlimited licenses lead entirely to negatives - for the city, for the industry and for riders. Like liquor stores and bars, it is NOT an industry you want sorting itself out in a “free market.” (Are some towns and cities too restrictive in the number of licenses? Almost certainly. Not relevant to the overall discussion.) ---
**Author:** ![Really\_Not\_All\_That\_Bright](https://avatars.discourse-cdn.com/v4/letter/r/e8c25b/32.png) [@Really\_Not\_All\_That\_Bright](https://boards.straightdope.com/u/Really_Not_All_That_Bright)\ **Post date:** [June 16, 2015, 6:29pm UTC](https://boards.straightdope.com/t/why-isnt-uber-regulated-as-a-taxi-service/722673/36 "2015-06-16T18:29:06Z")
To clarify, **ralph** doesn’t think they shouldn’t be liable. He is _concerned_ that they are not. It’s still a pretty grey area, too. ---
**Author:** ![sachertorte](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/sachertorte/32/3727_2.png) [@sachertorte](https://boards.straightdope.com/u/sachertorte)\ **Post date:** [June 16, 2015, 6:38pm UTC](https://boards.straightdope.com/t/why-isnt-uber-regulated-as-a-taxi-service/722673/37 "2015-06-16T18:38:51Z")
Or you can be like the Hamptons and throw the drivers in jail: > **[Hamptons Uber drivers face possible jail time on charges that they violated...](https://www.businessinsider.com/hamptons-uber-drivers-are-heading-to-court-2015-6)** > > 22 drivers are heading to court. > [@](#): > > It was not until attorneys threatened jail time for drivers that the company ultimately stopped operations. That decision was partially to protect drivers, according to Uber. I have mixed feelings about uber, but I think jailing the drivers is wacko. ---
**Author:** ![Shalmanese](https://avatars.discourse-cdn.com/v4/letter/s/45deac/32.png) [@Shalmanese](https://boards.straightdope.com/u/Shalmanese)\ **Post date:** [June 16, 2015, 6:45pm UTC](https://boards.straightdope.com/t/why-isnt-uber-regulated-as-a-taxi-service/722673/38 "2015-06-16T18:45:58Z")
> [@Snowboarder\_Bo](#): > > In what way are they “a low-cost alternative to taxis” such that they are not, in fact, taxis? 😕 > > I’ll answer for you: Uber cars are taxis. > > And since they are taxis, why should they be free to operate without regulation when taxi companies that call themselves taxi companies are not free to operate without regulation? When I perform a street hail, I have no choice as to what provider I’m contracting to, I have no power to perform price negotiations and if I choose not to take a hail, it’s a huge annoyance to the driver. Thus, it makes sense for the government to regulate a common standard of service that includes things like fixed pricing across all street hails, rules around who you’re not allowed to reject and car and driver standards. When I’m booking a car for a later engagement, I do get to choose the provider, compare prices and negotiate terms directly. In this case, the free market can be relied on to weed out poor business practices due to competitive pressure. This is why the livery market has always been less regulated than the taxi market. (most people don’t even know livery services exist though and they’ve traditionally called taxi companies for livery style services). The biggest innovation that Uber/Lyft et al have performed is they’ve brought livery times down from 1 - 2 hours to 3 - 5 minutes. As a result, we’ve started treating livery style transportation as if they were cabs. But you still can’t flag a passing Uber car down on the street, you have to go through the app. If you don’t like Uber, you always have the choice to switch to Lyft and vice versa. Just because Uber is used like cabs doesn’t mean it should be regulated like a cab. ---
**Author:** ![Cheesesteak](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/cheesesteak/32/3694_2.png) [@Cheesesteak](https://boards.straightdope.com/u/Cheesesteak)\ **Post date:** [June 16, 2015, 6:46pm UTC](https://boards.straightdope.com/t/why-isnt-uber-regulated-as-a-taxi-service/722673/39 "2015-06-16T18:46:12Z")
> [@Amateur\_Barbarian](#): > > If you don’t understand the economics and civic benefits of limiting the number of taxi licenses, you don’t understand enough about the business to have an opinion. Seriously. Of course I understand it. I’m just not mired in 20th century thinking. If traditional taxi companies didn’t suck ass, nobody would be clamoring to give Uber their business. The single best thing you can say about traditional taxis is that they exist thanks to a government provided restriction on competition. They don’t provide excellent service, or convenient service, nor do they provide a service that couldn’t be provided equally well by any of 200 million licensed drivers in this country. ---
**Author:** ![Amateur\_Barbarian](https://avatars.discourse-cdn.com/v4/letter/a/59ef9b/32.png) [@Amateur\_Barbarian](https://boards.straightdope.com/u/Amateur_Barbarian)\ **Post date:** [June 16, 2015, 6:53pm UTC](https://boards.straightdope.com/t/why-isnt-uber-regulated-as-a-taxi-service/722673/40 "2015-06-16T18:53:46Z")
> [@Cheesesteak](#): > > Of course I understand it. I’m just not mired in 20th century thinking. > > If traditional taxi companies didn’t suck ass, nobody would be clamoring to give Uber their business. The single best thing you can say about traditional taxis is that they exist thanks to a government provided restriction on competition. They don’t provide excellent service, or convenient service, nor do they provide a service that couldn’t be provided equally well by any of 200 million licensed drivers in this country. Given a free hand and the realities of the situation, how would you improve taxi service here in the 21st century? Other than trivialities about using tech for better hailing and pickup and payment, I can’t think of a one. The defining realities make the industry what it is, and while a bunch of college techies who have hardly ever ridden in a cab much less driven one might have bright ideas, reality is going to rub all the shine right offa them. You might as well substitute “plumbing repair” for “taxi” in the discussion - no amount of brilliant new-century-think is going to change its realities. [Previous page](https://boards.straightdope.com/t/why-isnt-uber-regulated-as-a-taxi-service/722673.md?page=1) [Next page](https://boards.straightdope.com/t/why-isnt-uber-regulated-as-a-taxi-service/722673.md?page=3)