Uber Overtakes Traditional Taxis In NYC

First I should note that this comment is in regards to UberX, the "ride sharing" service. Not over Uber black or any other that work with licensed livery drivers. I already brought this up with my response to Zerofoo's comment but I wanted to expand more in my own comment. I personally find this fascinating. Most taxi regulations are B.S. but I for one wholeheartedly agree with requiring taxi drivers to carry commercial insurance. I am fully aware that UberX features a $2M policy that covers anything that a driver's normal insurance doesn't cover, but I find the way they structure it to be a little hinkey. Especially how they say that it kicks in only after what the driver's insurance already covers. Well, since most private insurance won't cover commercial activity, that coverage would be $0. I am not a lawyer but I don't get how this scheme satisfies any state's livery insurance requirements. But now that UberX is becoming so widespread and popular I think we will get to see how their insurance scheme holds up in the real world and if it's viable. My prediction is that the brown fecal matter will impact the rotary ventilation device at some point and there will be a big front page accident and court case. One that will possibly stick Uber Technologies Inc. with the bill for an UberX driver accidentally plowing into a busload of orphans and nuns. And then UberX will have to work with the existing traditional insurance scheme, which I think will be a good thing. But I am no expert and I can easily be wrong on this.

So a larger number of people signed up for unregulated app that presumes to take fares based on a service that is wholly unregulated except by a private organization that has an intense interest to maximize drivers (even if the driver doesn't make a living wage doing so). This is surprising how? Taxis are regulated for a number or reasons but not limited to: Keeping traffic within line of service limitations, making sure companies and drivers are verifiable and have a direct line of ownership, and of course the fact that as a service using public areas to benefit a private interest the public has a right to see a portion of that profit returned. I understand the old warhorses of the Cold War era still scream 'socialism' at the very threat of the government keeping you safe but Uber isn't the savior you want to jump into the arms of anymore than a knife. But this news shouldn't be surprising. Uber is going to peak then dwindle to manageable level as drivers fall out of the program due to costs and lack of constant fares. Not to mention the inevitable legislation that puts them into a complex business class that needs to come along to protect citizens.

Uber in NYC is different from other markets - there are no "private" drivers using their personal vehicles. Uber X is run through a traditional car service operation, just with the Uber dispatch and payment interface. These are TLC drivers - the only difference between Uber X, XL, and Black here is the type of vehicle. The same insurance and other regulator requirements apply equally to Uber X/Black and traditional car service drivers here. The Uber X cars have the same TLC licensing decals and plates as any other car service. Uber X fares here in NYC are not as low as other markets, in part due to the cost of these TLC-sanctioned operations, but this was the bargain that Uber struck with regulators in this market. One key advantage here is that hailing an Uber via the app allows you to skip the entire taxi line at the airports and major venues, like Madison Square Garden. The Uber X drivers I've spoken to are much happier with Uber than a traditional car service or taxi setup. I've found them to simply be much better drivers - much more sane behind the wheel, no white-knuckle rides like with some taxi drivers. The fares are sometimes cheaper than neighborhood car services, other times not, but Uberpool is quickly changing that - I've heard of people paying $30 for a ride from LGA/JFK to midtown Manhattan, easily half the price of such a taxi ride.

We just spent a week in NYC. Stayed near Columbus Circle because it was close to the Metropolitan Opera. Walked everywhere, including the theater district and Enterprise Museum. We walked a couple of miles to the Metropolitan Museum of Art. When we came out, it was raining. Could we get a cab? Not a hope in Hades. The one cab driver who stopped for us didn't like our destination and sped off. We did take a cab to La Guardia. He got us there without too much hassle. Next time, we'll be using Uber X. On a side note, I noticed the cabs in NYC are Priuses, Camry Hybrids, previous model Ford Escape hybrids and a few old Panthers. Some green initiative. I gather.