Published via Inbox: 2013-05-20 00:32:57
Just about six months ago, Uber won a big battle with D.C. regulators to have its on-demand car service approved for operation within the nation’s capital. But new regulations from the D.C. Taxi Commission could severely hamper the company’s ability to offer low-cost services in the district.
Ryan Lawler
Ryan has spent more than five years covering business, technology, and telecom-related subjects for a variety of publications based in New York and San Francisco. Ryan currently works as a writer for TechCrunch.
My Two Cents
What's messed up about the conflict between Uber and the DC Taxi Commission is that Uber may be headed for the same type of fate as Napster (if not careful)! Incumbent franchises / business models protecting its turf (mafioso-style). Taxi Commissions are organized franchise shake-downs. Uber is a better way and more efficient way, but disintermediation is ugly. People feel like you are taking bread off their table. The music industry shut down Napster. Tax Commissions will go after Uber. DC is beginning of a bad trend I fear. City by city the commissions will go after Uber. Driving force in what the Commissions will want: the aggregation of user/customer data and payment data which Uber does not share. Not sharing with the local taxi-commissions will cause endless conflict with local taxi-mafia's. I personally don't see how this ends well for either side. If the Commissions don't show us their value, then the customer will revolt (always), which we have by using Uber so much. Customers love Uber and use it b/c the price is about the same as taxis but the cars are much nicer. That means Uber should win in the long run. But better doesn't always win. Be careful Uber. This is going to be a long hard fought war for you.
