• Hey, guest user. Hope you're enjoying NeoGAF! Have you considered registering for an account? Come join us and add your take to the daily discourse.

S.F. taxi industry in turmoil, might collapse in months, due to Uber/Lyft pressure

Status
Not open for further replies.

Guevara

Member
This is pretty local news, but I thought it was interesting as a harbinger of things to come. Pressure on the taxi industry has been enormous, the current commissioner is stepping down, and one cab company president predicts the industry might collapse in the next 18 months.

Chris Hayashi, head of San Francisco's taxi industry during arguably its most tumultuous times, told The San Francisco Examiner on Thursday that she would step down from her post June 20.

The tall, hard-to-miss, curly-haired blonde took over as deputy director of the San Francisco Municipal Transportation Agency's Taxis and Accessible Services Division in December 2008, a time when the industry was in dire need of reform.

A lawyer by trade, Hayashi, 51, maneuvered the transition from the now-defunct Taxicab Commission to the cab industry's regulation under the SFMTA, and she took the lead in implementing a transferable medallion system that taxi drivers desired. She informed colleagues of her imminent retirement for the better part of a year and leaves as The City's taxis are in a tight race for riders with Uber, Lyft, Sidecar and similar mobile-app-based services.

"I'm ready to hand off this continuing process to somebody else -- in a responsible way that's not going to diminish what I've done or slow down the progress," Hayashi said. "I'm just ready. Really, a large part of the decision is about timing with my years of service to The City and my age."

"It's not," she added, "because Travis has kicked my ass."

That's Travis Kalanick, founder and CEO of competitor Uber.

Hayashi said she is "extremely proud" of the changes she fronted, which include a taxi enforcement team after the Police Department backed away from the role, and that it seems the industry in the past five years has moved "100 light-years forward." Then, enter Uber, Lyft, Sidecar and others formally known as transportation network companies.

"Here I am, trying to steer the Titanic and someone hits me over the head with a baseball bat, is pretty much what the TNC issue is like," Hayashi said. "We were about to clear, and all of a sudden here comes billions of dollars of venture capital for people who are willing to break every law in the book."
But DeSoto Cab Co. president Hansu Kim, who agreed that Hayashi shepherded the industry through some of its most trying times, said that with Uber, Lyft and the like, he would be surprised if the cab industry survives another 18 months in The City.
http://www.sfexaminer.com/sanfrancisco/head-of-sf-taxis-to-retire/Content?oid=2810569

EDIT: WHAT IS UBER??!!

Uber is an American venture-funded startup and transportation network company based in San Francisco, California, that makes mobile application software ("app") that connects passengers with drivers of vehicles for hire and ridesharing services.[1] The company arranges pickups in dozens of cities around the world.[2]

Uber's pricing is similar to metered taxis although all hiring and payment is handled exclusively through Uber and not with the driver personally. If the Uber car is travelling at a speed greater than 11 mph, the price is calculated on a distance basis. Otherwise, the price is calculated on a time basis.[43] At the end of a ride, the complete fare (which does not include a tip - Uber's exact wording is "No Need to Tip" and there is no option to add a tip except to offer it via cash) is automatically billed to the customer's credit card.[3] Uber has said that its high prices are the premium that the customers pay for a cab service that is not only reliable but also punctual and comfortable.[44][45][46]
 

dextran

Member
Stupid to call it an industry when über and lift are clearly part of the same industry. Competition is great in other industries, but not here? Madness. Nothing is stopping yellow cab in making an app. Make the better product if you want to survive.
 

Blader

Member
I'd like Uber a lot more if any of their drivers knew where the hell they were going. If they're not using their GPS, they need directions every step of the way.
 

Ominym

Banned
It's what happens when you maintain the status quo. The taxi industry should've done a better job of adapting to new technology; they should've offered more competitive pricing and stopped gouging people simply because they could.

A similar issue is going on in my hometown as Uber and Lyft just moved in. Every cab company in town except for one is owned by a single guy, and you better believe he's doing everything in his power to fight their progress. Petitioning to make the services illegal, bribery, rumor spreading, etc. Prices for cabs have dropped to a record low and they're still not able to compete with the ride sharing services.

You either adapt or die. You don't get to sit and complain because you failed to innovate and someone else decided to eat your lunch.
 

Yaboosh

Super Sleuth
It's what happens when you maintain the status quo. The taxi industry should've done a better job of adapting to new technology; they should've offered more competitive pricing and stopped gouging people simply because they could.

A similar issue is going on in my hometown as Uber and Lyft just moved in. Every cab company in town except for one is owned by a single guy, and you better believe he's doing everything in his power to fight their progress. Petitioning to make the cabs illegal, bribery, rumor spreading, etc. Prices for cabs have dropped to a record low and they're still not able to compete with the ride sharing services.

You either adapt or die. You don't get to sit and complain because you failed to innovate and someone else decided to eat your lunch.


Uber is more expensive though.
 
Good. Uber is the way of the future, especially when, in the not-too-distant future, you can call a Google driverless car to pick you up with a touch of your smartphone.


What is uber/lyft and how are they applying pressure to the industry?

Use your smartphone to call a private taxi to your location effortlessly.
 
Stupid to call it an industry when über and lift are clearly part of the same industry. Competition is great in other industries, but not here? Madness. Nothing is stopping yellow cab in making an app. Make the better product if you want to survive.

They aren't. Traditional taxi industry works through semi-official cartels which engage in rampant price fixing while chanelling cash to corrupt officials. They're a relic of the past where you needed a radio station to work, for which the local muncipalities sold licenses for.
 

blackflag

Member
Good, fuck SF taxis. Everytime I'm there they try and lie to me and tell me they can only accept cash. Mofo's...I'm there like every other week....I know the deal. Take my card or get bent.
 
Stupid to call it an industry when über and lift are clearly part of the same industry. Competition is great in other industries, but not here? Madness. Nothing is stopping yellow cab in making an app. Make the better product if you want to survive.

Dp.
 
now imagine when those Google self driving cars start to hit the market and spread across the city like those short term bike rental service.
 

Yaboosh

Super Sleuth
I've always found Uber way cheaper than regular cabs in Boston. Hailo can be pretty expensive, though.


I don't have much experience with either, but in my limited experience and in talking to others that use it in SF, it is a few dollars more expensive typically, but you know the cost right up front and payment is super easy.
 

terrisus

Member
Use your smartphone to call a private taxi.

Can't you do that anyway?

I mean, I know in busy cities the image is of flagging a cab down on the side of the road, but, around here, if I want a cab, I call up a number, arrange a date and time, and it will arrive when I requested, calling when they're there - and that's nothing new, it's been that way for at least 15 years.
 
So they'll go the way of Blockbuster and just die while the new kids take over with their superior services? Good. No one misses Blockbuster.

I lied, I do miss Blockbuster a little bit ;_;
 
now imagine when those Google self driving cars start to hit the market and spread across the city like those short term bike rental service.

Can't WAIT for the Self-driving cars to just ferry me around with the touch of a button on my smartphone.

24 hours a day service, you tell the Google car exactly where you need to go via a map, cheap prices...it's going to be fantastic.
 

Guevara

Member
I have mixed feeling: on the one hand the taxi industry has sucked for years. You ever try to call a cab? Good luck.

On the other: better have a smartphone. This is going to be bad for folks who aren't tech savvy, or can't afford a smartphone, or even just if you are out and your phone battery dies.
 
Can't you do that anyway?

I mean, I know in busy cities the image is of flagging a cab down on the side of the road, but, around here, if I want a cab, I call up a number, arrange a date and time, and it will arrive when I requested, calling when they're there - and that's nothing new, it's been that way for at least 15 years.

Basically remove the call part, wrap it up in a fancy smartphone app, and make the cars nicer/service a bit better.
 

gcubed

Member
good, i haven't seen a more worthless group then the taxi's around SF. Not like the industry will collapse, more like the traditional corrupt as shit asshats will lose their businesses and uber/lyft will see a large influx in drivers.

I'll give uber credit, they have finally started to come around to becoming a real part of the market instead of fighting the sane regulation they used to
 
Can't you do that anyway?

I mean, I know in busy cities the image is of flagging a cab down on the side of the road, but, around here, if I want a cab, I call up a number, arrange a date and time, and it will arrive when I requested, calling when they're there - and that's nothing new, it's been that way for at least 15 years.

Your smartphone detects where you are, and you just press "Request black car."

And you can see how close the car is to you...you can pay with your smartphone...

It's much more convenient than the traditional call-ahead service. And it's not all that expensive, either.
 

terrisus

Member
Basically remove the call part, wrap it up in a fancy smartphone app, and make the cars nicer/service a bit better.

I find a call easier than an "app" myself.

You plug in where you want to go on the App, and press "Request black car."

And you can see how close the car is to you...you can pay with your smartphone...

It's much more convenient than the traditional call-ahead service. And it's not all that expensive, either.

Considering all cabs around me take debit/credit, I just don't really see the advantage over what's been available for a decade or more.
 
How much cheaper is the average fare if you use these new apps instead of regular taxi?
Its never cheaper, as the app services always come with their own fees and start with a set rate for tips, though you can change it.

Its always more expensive, but its so much more convenient, for both the passenger and driver alike. No cash trades hands, and you can see where your cab is at any time via GPS. Where I used to wait an average of 15-20 minutes for a cab to show up I now average 2-3 minutes for a pick-up.

I'm not seeing the particular issue here though, as I use the Flywheel app and still take traditional cabs through the service. Uber drivers were fucking flakes.
 
I have mixed feeling: on the one hand the taxi industry has sucked for years. You ever try to call a cab? Good luck.

This. I was in Portland a few months ago and couldn't get a cab . I called 6 numbers, nobody answered at 4, two numbers told me it would be 4-6 hours for a cab.

Fuck taxis.

I find a call easier than an "app" myself.

It would be if there was a single taxi service dispatch number. Instead you have to call a bunch of random services and simply hope that one answers and will pick you up.
 

Dennis

Banned
Its never cheaper, as the app services always come with their own fees and start with a set rate for tips, though you can change it.

Its always more expensive, but its so much more convenient, for both the passenger and driver alike.

I'm not seeing the particular issue here though, as I use the FlyWheel app and still take traditional cabs through the service. Uber drivers were fucking flakes.

More expensive?

That sounds nuts to me. Why not just hail a regular cab or order when to come at specified location and time.
 

ЯAW

Banned
Uber isn't here yet but our Taxi unions are already shaking. I mean I feel bad for the guys who are going to lose their job but thanks to the unions prices are sky high and we need Uber/Lyft. Hopefully things don't go bad as in France, I still see lot of uproar in up coming years.
 

Squalor

Junior Member
Its never cheaper, as the app services always come with their own fees and start with a set rate for tips, though you can change it.

Its always more expensive, but its so much more convenient, for both the passenger and driver alike. No cash trades hands, and you can see where your cab is at any time via GPS. Where I used to wait an average of 15-20 minutes for a cab to show up I now average 2-3 minutes for a pick-up.

I'm not seeing the particular issue here though, as I use the Flywheel app and still take traditional cabs through the service. Uber drivers were fucking flakes.
Are you kidding? You must not live in a metropolitan.

Uber is always cheaper than regular cabs, especially since there isn't the extra tip on top of the fair.
 
I find a call easier than an "app" myself.

Considering all cabs around me take debit/credit, I just don't really see the advantage over what's been available for a decade or more.

As do I, though I usually prefer online reservation so I have an email record.

It really is just a matter of a startup coming in and shaking up the system. The services provided are real similar. The only thing I can think of would be no tips required for Uber + the cars are legit way nicer. Less of a stigma.
 
I like Uber (and similar services) a lot, it was the best way to get around Atlanta when I went.

Can't WAIT for the Self-driving cars to just ferry me around with the touch of a button on my smartphone.

24 hours a day service, you tell the Google car exactly where you need to go via a map, cheap prices...it's going to be fantastic.

I wish this was a thing too, I hate driving to work.

I couldn't imagine this being cheaper than driving yourself though. Gotta use your power and every excuse in the book to extract as much money as possible.
 
In my line of work, I meet plenty of limo and taxi drivers. I'll tell you this much: They're scared shitless of Uber. It recently started expanding into my area, and it's already made significant dents in their business
 

Dennis

Banned
In my line of work, I meet plenty of limo and taxi drivers. I'll tell you this much: They're scared shitless of Uber. It recently started expanding into my area, and it's already made significant dents in their business

Couldn't they just start driving for Uber then?

Or are the Uber drivers paid less, part-timers or something?
 
More expensive?

That sounds nuts to me. Why not just hail a regular cab or order when to come at specified location and time.
I think you might have to try it to see the benefit. You bring up your smartphone app and hail a cab, it knows your address from GPS. You see the city map and a bunch of icons showing where the drivers are. Usually a driver agrees to pick you up within a few moments (10-30 seconds). From that point you can can see the car on the map, the driver name, company and cab #, and an estimated arrival time. That arrival time makes it easy to be outside just as the car pulls up.

Once your arrive at your drop-off all you do is leave the cab. Nothing else. No totals and no cash. Just open the door and leave. The app will charge you for the trip.

Do this a few times and you'll never go back to the old methods.

Uber is always cheaper than regular cabs, especially since there isn't the extra tip on top of the fair.
How does Uber make their money? They're definitely charging a fee. And I always tip.

But ultimately my biggest problem with Uber drivers was that they'd agree to pick me up and then never arrive because they decided to pick up someone on a corner along the way to my place. Happened too many times so I said fuck it.
 

mre

Golden Domers are chickenshit!!
is it an even playing field or are the new guys ducking regulation the taxi industry face because of how they operate?
That's pretty much the problem here.
"Here I am, trying to steer the Titanic and someone hits me over the head with a baseball bat, is pretty much what the TNC issue is like," Hayashi said. "We were about to clear, and all of a sudden here comes billions of dollars of venture capital for people who are willing to break every law in the book."

At that stage, she said, she didn't have the backing of government officials and it was a state agency, the California Public Utilities Commission, that got regulatory oversight of the TNCs.
They're not covered by the same regulations as taxis. At this point, I'm not really sure there are ANY transportation regulations governing services like Uber.
 

Ri'Orius

Member
Stupid to call it an industry when über and lift are clearly part of the same industry. Competition is great in other industries, but not here? Madness. Nothing is stopping yellow cab in making an app. Make the better product if you want to survive.

Don't Uber and Lyft ignore a lot of regulations the "real" taxi companies abide by? Stuff like commercial licenses for cab drivers, insurance, etc.?

That's why they say they're not the same industry: Uber and Lyft claim to be a different industry to get around regulations for taxi companies.
 
Status
Not open for further replies.
Top Bottom