# Why isn't Uber regulated as a taxi service?

**URL:** <https://boards.straightdope.com/t/why-isnt-uber-regulated-as-a-taxi-service/722673>\
**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:** 9

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**Author:** ![Deeg](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/deeg/32/2955_2.png) [@Deeg](https://boards.straightdope.com/u/Deeg)\
**Post date:** [June 19, 2015, 1:49am UTC](https://boards.straightdope.com/t/why-isnt-uber-regulated-as-a-taxi-service/722673/161 "2015-06-19T01:49:31Z")

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> [@Smapti](#):
>
> And yet, the ubiquitousness of “How’s my driving” bumper stickers has thus far failed to eradicate the raison d’etre of the CDL.

They’re not even remotely comparable. It’s ridiculously easy to rate a driver (since you have to go through the app to get a pick-up) and it’s easy to see a driver’s rating. The feedback is immediate and Uber makes the info visible. The bumper stickers are passive and it’s near impossible (or so inconvenient as to be impossible) to find the ratings.

> [@Amateur\_Barbarian](#):
>
> So the big protection scheme in Uber is… online ratings?
> 
> Idle afterthought: what happens when a majority of drivers have indifferent ratings?

What do you do about cabbies that have indifferent ratings? Can you even find the ratings of the cab driver that comes to pick you up? Part of the reason that current cab service is so poor is that the medallions reduce competition. If a cab company owns a medallion they don’t care if the customer isn’t completely satisfied because nobody can replace them without getting their medallion first.

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**Author:** ![Whack-a-Mole](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/whack-a-mole/32/141_2.png) [@Whack-a-Mole](https://boards.straightdope.com/u/Whack-a-Mole)\
**Post date:** [June 19, 2015, 2:05am UTC](https://boards.straightdope.com/t/why-isnt-uber-regulated-as-a-taxi-service/722673/162 "2015-06-19T02:05:04Z")

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> [@Amateur\_Barbarian](#):
>
> So what’s the argument here - that Uber-amateurs will somehow be better at navigation and knowing the streets than hackies?

Yes they are.

Not because Uber drivers are necessarily more knowledgeable (I have found them to be only slightly better than your average cab driver knowledge-wise) but rather because they have the tech on their side.

ALL Uber drivers have a smart phone. As I mentioned earlier you can type in the destination on your phone (in the Uber app) and it nearly instantly appears on their phone and automatically maps a route for them. Barring that, in a pinch, they can type it in themselves if the passenger is clueless.

Taxi drivers may or may not be able to do it. I have never seen one ever even try though.

Also, on occasion I have had an Uber driver take me out of the way on the way to my destination. I gave a low rank and Uber emailed me asking about the problem (no prompt from me). Uber can see the route taken (their phones map the route in real time) and see my destination and see the wrong route was used. I got a credit for the ride (again unprompted).

That never, ever, ever happens in a taxi and more than a few will take you sight seeing if you are not paying attention.

And Uber is cheaper than a taxi in most cases (at least in Chicago).

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**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\
**Post date:** [June 19, 2015, 2:12am UTC](https://boards.straightdope.com/t/why-isnt-uber-regulated-as-a-taxi-service/722673/163 "2015-06-19T02:12:17Z")

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> [@Hershele\_Ostropoler](#):
>
> And, um, what stops Uber drivers from scamming people?

The price is agreed upon for the trip in advance.

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**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\
**Post date:** [June 19, 2015, 2:13am UTC](https://boards.straightdope.com/t/why-isnt-uber-regulated-as-a-taxi-service/722673/164 "2015-06-19T02:13:25Z")

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> [@jz78817](#):
>
> they don’t, Uber does it for them via that “surge pricing” you seem to think is just okey-dokey.

Not a scam if it’s a FMV, in other words a price agreed upon by both before starting.

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**Author:** ![Whack-a-Mole](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/whack-a-mole/32/141_2.png) [@Whack-a-Mole](https://boards.straightdope.com/u/Whack-a-Mole)\
**Post date:** [June 19, 2015, 2:27am UTC](https://boards.straightdope.com/t/why-isnt-uber-regulated-as-a-taxi-service/722673/165 "2015-06-19T02:27:53Z")

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> [@jz78817](#):
>
> they don’t, Uber does it for them via that “surge pricing” you seem to think is just okey-dokey.

I HATE surge pricing but it is fair. As **DrDeth** noted the pricing multiplier (if there is one) is prominently displayed before you agree to the ride. Basically it is a supply and demand pricing model in real time.

If a thousand people want a ride at the same time (say a concert just let out) and there are only 50 cars in the area then people bid up the price. The people who REALLY want it will pay more. Seems fair.

My only complaint is I am seeing surge pricing a lot more recently. At times you would not expect it either like a Tuesday evening with no special events going on at like 7p. Not sure what is up with that but since I can use Uber, Lyft and Curb (taxi app) and usually just flag a taxi I have enough options to manage just fine. Still has seriously soured me on Uber (indeed I only signed up for Lyft because of this but then found Lyft does the same).

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**Author:** ![Shalmanese](https://avatars.discourse-cdn.com/v4/letter/s/45deac/32.png) [@Shalmanese](https://boards.straightdope.com/u/Shalmanese)\
**Post date:** [June 19, 2015, 8:03am UTC](https://boards.straightdope.com/t/why-isnt-uber-regulated-as-a-taxi-service/722673/166 "2015-06-19T08:03:36Z")

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> [@Amateur\_Barbarian](#):
>
> Why is that? I’m not judging the participants. I’m evaluating the model, and I am far from the only one who can see the limitations the idea (ideal) is going to have to come to terms with.
> 
> Maybe it will. There sure isn’t much to disagree with that “taxi service” is a few decades overdue for improvement. OTOH, a few improvements pioneered by the bright kidz could just solidify Yellow, Metro, et al. for another half-century.

Because it provides a meaningful upgrade in experience. As I mentioned earlier in the thread, I went from spending $20 a year to $1000 a year because of ridesharing. A lot of people I know have sold their cars because the hassle of owning a car in the city don’t outweigh the occasional benefits. Given that it costs ~$10,000 to own a car, spending any less on that on ridesharing is a net win.

You don’t understand how truly life changing on a ground level ridesharing has been and you’re still stuck in the old school cab mentality. Be in a place and try it a couple of times and then tell us what you think.

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**Author:** ![Shalmanese](https://avatars.discourse-cdn.com/v4/letter/s/45deac/32.png) [@Shalmanese](https://boards.straightdope.com/u/Shalmanese)\
**Post date:** [June 19, 2015, 8:07am UTC](https://boards.straightdope.com/t/why-isnt-uber-regulated-as-a-taxi-service/722673/167 "2015-06-19T08:07:23Z")

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> [@Whack-a-Mole](#):
>
> My only complaint is I am seeing surge pricing a lot more recently. At times you would not expect it either like a Tuesday evening with no special events going on at like 7p. Not sure what is up with that but since I can use Uber, Lyft and Curb (taxi app) and usually just flag a taxi I have enough options to manage just fine. Still has seriously soured me on Uber (indeed I only signed up for Lyft because of this but then found Lyft does the same).

Users hate surge pricing but it’s actually good for them. You should expect to see surge pricing more and more as they aggressively drop the base fare and use surge to adjust to demand. Think of it this way: when uber isn’t in surge, you’re paying too much as you’ve hit a price floor. Ideally, for maximum economic efficiency, uber should be in surge all the time so the price is free to adjust dynamically across the entire range.

But users are not homo economicus and they rightfully hate surge pricing so Uber’s forced to keep the price artificially high to stay out of surge most of the time.

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**Author:** ![jz78817](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/jz78817/32/1028_2.png) [@jz78817](https://boards.straightdope.com/u/jz78817)\
**Post date:** [June 19, 2015, 8:50am UTC](https://boards.straightdope.com/t/why-isnt-uber-regulated-as-a-taxi-service/722673/168 "2015-06-19T08:50:18Z")

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> [@Shalmanese](#):
>
> Because it provides a meaningful upgrade in experience. As I mentioned earlier in the thread, I went from spending $20 a year to $1000 a year because of ridesharing. A lot of people I know have sold their cars because the hassle of owning a car in the city don’t outweigh the occasional benefits. Given that it costs ~$10,000 to own a car, spending any less on that on ridesharing is a net win.
> 
> You don’t understand how truly life changing on a ground level ridesharing has been and you’re still stuck in the old school cab mentality. Be in a place and try it a couple of times and then tell us what you think.

Calling Uber “ride sharing” is a LIE and you damn well know it.

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**Author:** ![An\_Gadai](https://avatars.discourse-cdn.com/v4/letter/a/d6d6ee/32.png) [@An\_Gadai](https://boards.straightdope.com/u/An_Gadai)\
**Post date:** [June 19, 2015, 12:44pm UTC](https://boards.straightdope.com/t/why-isnt-uber-regulated-as-a-taxi-service/722673/169 "2015-06-19T12:44:20Z")

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[QUOTE=Hershele Ostropoler;18450434  
At some point, digital hails will supplement or supplant standing on the sidewalk and sticking your arm out. If the taxi companies are fighting this, I can come up with no other explanation than a knee-jerk resistance to change; it seems to me it will be a net benefit for both drivers and riders. It is a shift caused, or at least hastened, by Uber et al. But that doesn’t make leaving the “rideshare”/e-taxi services unregulated the best course of action.[/QUOTE]

In Ireland Hailo is a popular app that liaises with taxis along the lines of Uber. Not all taxi drivers use Hailo but more and more of them do and people who don’t want to stand out on a street of a rainy, cold night don’t have to. I think the only people who lose out in this arrangement are those hired by taxi companies to work their phones.

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**Author:** ![cmyk](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/cmyk/32/3353_2.png) [@cmyk](https://boards.straightdope.com/u/cmyk)\
**Post date:** [June 19, 2015, 1:36pm UTC](https://boards.straightdope.com/t/why-isnt-uber-regulated-as-a-taxi-service/722673/170 "2015-06-19T13:36:05Z")

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I had to visit San Francisco a week out of every month for over a year for a gig I was involved with. I gotta tell you, Uber was a godsend in getting to and from the hotel and studio every day. It was a far, far better experience than trying to grab a cab. The realtime map view of where the Uber car is headed to pick you up, and being able to drop a pin on locations took all the frustration out of the process. Same with never having to deal with cards or cash.

Put the taxi’s I’d hail in NYC to shame anytime I visited there.

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**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 19, 2015, 1:49pm UTC](https://boards.straightdope.com/t/why-isnt-uber-regulated-as-a-taxi-service/722673/171 "2015-06-19T13:49:29Z")

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> [@Shalmanese](#):
>
> Because it provides a meaningful upgrade in experience.

You know what? I knew you were posting from SF without looking at your location tag.

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**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 19, 2015, 1:54pm UTC](https://boards.straightdope.com/t/why-isnt-uber-regulated-as-a-taxi-service/722673/172 "2015-06-19T13:54:19Z")

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> [@Whack-a-Mole](#):
>
> I HATE surge pricing but it is fair. As **DrDeth** noted the pricing multiplier (if there is one) is prominently displayed before you agree to the ride. Basically it is a supply and demand pricing model in real time.

Sensible, perhaps. Not sure about fair. I would be pretty pissed if I had planned on using Uber to get home and found out that my ride would be $80 at 2 am. I don’t actually use Uber so maybe surge pricing isn’t quite as volatile as that.

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**Author:** ![cmyk](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/cmyk/32/3353_2.png) [@cmyk](https://boards.straightdope.com/u/cmyk)\
**Post date:** [June 19, 2015, 2:07pm UTC](https://boards.straightdope.com/t/why-isnt-uber-regulated-as-a-taxi-service/722673/173 "2015-06-19T14:07:05Z")

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> [@Amateur\_Barbarian](#):
>
> You know what? I knew you were posting from SF without looking at your location tag.

You know what? I figured you never even used Uber just from reading your posts.

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**Author:** ![cmyk](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/cmyk/32/3353_2.png) [@cmyk](https://boards.straightdope.com/u/cmyk)\
**Post date:** [June 19, 2015, 2:09pm UTC](https://boards.straightdope.com/t/why-isnt-uber-regulated-as-a-taxi-service/722673/174 "2015-06-19T14:09:52Z")

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> [@Really\_Not\_All\_That\_Bright](#):
>
> Sensible, perhaps. Not sure about fair. I would be pretty pissed if I had planned on using Uber to get home and found out that my ride would be $80 at 2 am. I don’t actually use Uber so maybe surge pricing isn’t quite as volatile as that.

IME, it’s at its cheapest at such hours. It might hike up a bit during high-demand hours like 5:00 pm, but it was never outrageous, as usually there’s more drivers on the road to compensate.

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**Author:** ![leahcim](https://avatars.discourse-cdn.com/v4/letter/l/b4bc9f/32.png) [@leahcim](https://boards.straightdope.com/u/leahcim)\
**Post date:** [June 19, 2015, 2:25pm UTC](https://boards.straightdope.com/t/why-isnt-uber-regulated-as-a-taxi-service/722673/175 "2015-06-19T14:25:21Z")

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> [@Shalmanese](#):
>
> Users hate surge pricing but it’s actually good for them.

I take a train into Manhattan every morning and back home every night. The trains I use are usually “peak hour” trains that have more expensive tickets, because a lot of people have a similar commute to mine.

This seems to be much better accepted than surge pricing, even though the justification is probably less convincing. For the trains, it is merely a surcharge to “encourage avoiding those times” – pure behaviour modification. It is not putting more trains onto the tracks to take the extra load, and it is a blunt hammer – peak prices go into effect based solely on time, even if there isn’t any actual increase in ridership at that time.

With Uber’s “surge pricing”, it’s at least possible that the increase in price will result in an increase in availability, and it only shows up when there is an actual “surge”, not just a times when somebody thinks there is usually a surge.

I think the only reason “surge pricing” is thought less of than “peak pricing” is that it _seems_ like it is more personal.

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**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 19, 2015, 2:31pm UTC](https://boards.straightdope.com/t/why-isnt-uber-regulated-as-a-taxi-service/722673/176 "2015-06-19T14:31:21Z")

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> [@cmyk](#):
>
> You know what? I figured you never even used Uber just from reading your posts.

You know what? None of you who have made this smug slap can connect it to reality. It doesn’t matter if Uber service is akin to having individual suites on an Air Emirates flight. The operation has to fit into the real world, and the evidence is mounting that it does not - a bunch of squeeing techy users aside - and that like so many revolutions, it will have to adapt to existing reality or die.

Whether my ass has ever been in an Uber vehicle or not has nothing to do with that.

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**Author:** ![cmyk](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/cmyk/32/3353_2.png) [@cmyk](https://boards.straightdope.com/u/cmyk)\
**Post date:** [June 19, 2015, 2:33pm UTC](https://boards.straightdope.com/t/why-isnt-uber-regulated-as-a-taxi-service/722673/177 "2015-06-19T14:33:20Z")

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> [@leahcim](#):
>
> I take a train into Manhattan every morning and back home every night. The trains I use are usually “peak hour” trains that have more expensive tickets, because a lot of people have a similar commute to mine.
> 
> This seems to be much better accepted than surge pricing, even though the justification is probably less convincing. For the trains, it is merely a surcharge to “encourage avoiding those times” – pure behaviour modification. It is not putting more trains onto the tracks to take the extra load, and it is a blunt hammer – peak prices go into effect based solely on time, even if there isn’t any actual increase in ridership at that time.
> 
> With Uber’s “surge pricing”, it’s at least possible that the increase in price will result in an increase in availability, and it only shows up when there is an actual “surge”, not just a times when somebody thinks there is usually a surge.
> 
> I think the only reason “surge pricing” is thought less of than “peak pricing” is that it _seems_ like it is more personal.

Good points. Also, I think services like Uber can manage a surge pricing model, because they know exactly the number/demand of users at any given moment and are able to adjust accordingly. Of course, this seems ripe for abuse by making it seem like there’s a surge on the user end to make more dough, but hell, most fares were still cheaper than a cab. And much more convenient too.

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**Author:** ![Colibri](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/colibri/32/1841_2.png) [@Colibri](https://boards.straightdope.com/u/Colibri)\
**Post date:** [June 19, 2015, 2:40pm UTC](https://boards.straightdope.com/t/why-isnt-uber-regulated-as-a-taxi-service/722673/178 "2015-06-19T14:40:59Z")

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> [@jz78817](#):
>
> Calling Uber “ride sharing” is a LIE and you damn well know it.

**Moderator Note**

**jz78817** , let’s dial it back. You can discuss Uber without making such accusations against other posters or shouting. If you must, take it to the Pit.

This goes for everyone: drop the personal remarks.

Colibri  
General Questions Moderator

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**Author:** ![Shalmanese](https://avatars.discourse-cdn.com/v4/letter/s/45deac/32.png) [@Shalmanese](https://boards.straightdope.com/u/Shalmanese)\
**Post date:** [June 19, 2015, 2:45pm UTC](https://boards.straightdope.com/t/why-isnt-uber-regulated-as-a-taxi-service/722673/179 "2015-06-19T14:45:58Z")

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> [@Amateur\_Barbarian](#):
>
> You know what? None of you who have made this smug slap can connect it to reality. It doesn’t matter if Uber service is akin to having individual suites on an Air Emirates flight. The operation has to fit into the real world, and the evidence is mounting that it does not - a bunch of squeeing techy users aside - and that like so many revolutions, it will have to adapt to existing reality or die.
> 
> Whether my ass has ever been in an Uber vehicle or not has nothing to do with that.

What real world things does it have to fit into that it doesn’t now? Labor regulations? Price increases? Taxi industry lobbying? Be more specific in your criticism.

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**Author:** ![cmyk](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/cmyk/32/3353_2.png) [@cmyk](https://boards.straightdope.com/u/cmyk)\
**Post date:** [June 19, 2015, 2:51pm UTC](https://boards.straightdope.com/t/why-isnt-uber-regulated-as-a-taxi-service/722673/180 "2015-06-19T14:51:42Z")

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> [@Amateur\_Barbarian](#):
>
> You know what? None of you who have made this smug slap can connect it to reality. It doesn’t matter if Uber service is akin to having individual suites on an Air Emirates flight. The operation has to fit into the real world, and the evidence is mounting that it does not - a bunch of squeeing techy users aside - and that like so many revolutions, it will have to adapt to existing reality or die.
> 
> Whether my ass has ever been in an Uber vehicle or not has nothing to do with that.

Eventually the taxi industries and State politics will somehow try to hammer them into a more regulated model, but I don’t know what kind of real-world you’re talking about. The world I live in has people who need to get to places by vehicle. Uber has invariably met my needs. It works. It’s viable. People like it, want it, and use it.

Why would you think it only applies to people in tech industries? Millions and millions of people have smartphones.

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