UberCab Ordered to Cease And Desist

I think there is a pattern across both UberCan and AirBnb where both are facing opposition from existing, regulated industries (taxi services and hotels respectively).<p>Among all the posturing essentially meant to protect their existing businesses, I do think they have one valid point - that they both skirt around laws and regs in place. Though a lot of these laws and regulations are outdated/driven by special interests, some of them are in place for a reason. For example, not having hotels in residential areas so that neighbors aren't disturbed. Or having safety training for drivers of cabs.<p>I do worry about the risk that UberCab/AirBnb could cause to its users (or others indirectly impacted).<p>In both cases, the existing industries aren't doing themselves any favors. The argument around existing dispatchers maybe not making a living anymore - if someone else provides a better service than I do, it isn't their fault if I can't make money anymore. Reading the comments on the cab drivers' blog [1] is a bit sad. One of the commenters recognizes how good Ubercab is but uses that as an argument on why they should be shut down, instead of going "Hey, what if we started doing some of the things they do and improve?"<p><a href="http://phantomcabdriverphites.blogspot.com/2010/09/tac-iii-part-2.html" rel="nofollow">http://phantomcabdriverphites.blogspot.com/2010/09/tac-iii-p...</a>

Maybe I'm just misinformed but... basically they're running a taxi service without a license to do that, then acting surprised when the city calls them on it?<p>There's a taxi company I use whenever I'm in London called Addison Lee, and they've done the same as UberCab - using nice technology to know where you are, where the nearest available cars are, how long it will take for a car to get to you... In actual fact, at least based on <a href="http://www.ubercab.com/learn" rel="nofollow">http://www.ubercab.com/learn</a>, AdLee is better: it has all the benefits of UberCab, plus they tell you the price of the journey before you book the car (it won't become more expensive if you get stuck in traffic, or if the driver takes a longer route), which always works out cheaper than a black cab, in my experience. Oh, and in adition to letting you pay with the credit card on your account, you can chose to pay by cash if you so wish.<p>Anyway, my point? Seems that Addison Lee have been (albeit in a different city/country) doing what UberCab is doing, slightly better, and for quite a bit longer: and they actually bothered to pay to be a licensed taxi provider, meaning that the London officials don't have a problem with them.

The conflict was inevitable but as we often see in business, old players use regulation, unions and back room deals to protect their markets. Look at the RIAA, TV and movie industries. The technology is available to bring content to any device, anytime but they use regulation to stop it.<p>It's bullshit. SF taxis are inefficient and difficult to use. Ubercab solves a problem and calls out just how ridiculous the SF Taxi system is. Instead of fighting to make their business more relevant, the taxi unions fight with regulation.<p>I use Ubercab a lot. Why? * Because a car comes to me in a few minutes. * I don't have to stand in the rain and wonder if the illuminated taxi light means the taxi will stop or not. * I don't have to wonder if the cab takes cards or if the driver will simply refuse to take them even if his company does. * Most importantly, I don't have to hold on for dear life wondering if I'm going to die before i get where I'm going.<p>Let's all stand up and say screw you unions. Ubercab is an innovator. SF taxis, be more efficient and you'll win. Otherwise, get out of the way.

This sounds familiar:<p><pre><code> "Ubercab threatens dispatchers’ way of earning a living" </code></pre> Oh, yeah:<p><pre><code> "[TECHNOLOGY] threatens [PROFESSION]s' way of earning a living" </code></pre> Not a valid argument.

This seems like the perfect business to run from outside of the US. To run a traditional taxi company, you need to have a presence in the area where the taxicabs are. To run a website that connects two people together, you can be anywhere. And you are outside of the legal reach of the City of San Francisco.<p>Sure, the <i>users</i> will be violating some city regulation, but that, like file sharing, is unprofitable to follow up on. (AirBnB is in a similar situation. No need to give the irritated local governments a legal target.)

i've given up on trying to get a cab in sf.<p>there's only 1381 highly regulated taxi medallions and a constant shortage. most potential customers have, just like me, given up on ever getting a cab when they need one, so there's not only artificially decreased supply, but also artificially decreased demand.<p>there's been extensive comparative research into taxi regulation for decades. the reason SF is so much worse even than other cities that restrict the amount of cabs, is that SF doesn't only regulate street pick-up but also dispatch.<p>google scholar is full of papers on taxi regulation research, and there's <a href="http://www.schallerconsult.com/taxi/" rel="nofollow">http://www.schallerconsult.com/taxi/</a> and other pages.<p>unsurprisingly deregulation is in the interest of the drivers because a competitive market increases customer demand. would you sometimes pay double the fare if you could get a cab _right now_, instead of waiting 25 minutes and praying? hell yeah, if only they let you!<p>let's hope uber can make on-demand transportation in SF usable again.

Who actually uses UberCab?<p>Taxi Magic is a fantastic app that's totally legit. Open the app, use your location to book a cab and within 5 minutes it's there. It's Luxor Cabs who are fully licensed and use computerized dispatch.<p>I tried UberCab once and it was a nicer car but the experience was no better than Taxi Magic, and significantly more expensive to get around town.<p>I hate non-metered cabs. Taxis are one place where regulation is good. We all know what it's like to deal with a shady taxi driver. The tendency is to gouge vulnerable travelers, not to set lower prices. The consistency that regulation offers is the most important.<p>I also can't believe the complaints about the taxis in SF. The cab companies are downright excellent when you actually call, and plentiful on the streets.

Am I the only one who finds it naive to name a startup UberCAB and then act as if it had nothing to do with taxi dispatching services? It's as if the PayPal founders decided to call it "UberBank."

"Taxi dispatchers make money on tips. Ubercab threatens dispatchers’ way of earning a living. Limos have to prebook an hour in advance, only licensed taxis can pick someone up right away by San Francisco law, yet Ubercab picks people up right away, yet doesn’t have a taxi license." Not like you can get a taxi in under an hour in SF anyways ;)<p>Seriously, this just validates their model and I hope they can figure this out.

Three points:<p>1. Sounds like UberCab should look into licensing out their platform to existing cab companies. It would mean lower margins, but they can quickly scale throughout the US and beyond much faster.<p>2. UberCab's blog post is arrogant. Did they really think they can avoid paying expensive licensing fees because they are using black cars instead of yellow cabs? Taxi licenses are very expensive and a lucrative revenue source for every major city. A taxi seat can cost as much as 1 million to purchase in NYC, and I know other cities such as SF and LV are not much cheaper due to the fixed number of licenses. I can only imagine the outrage of other cab drivers losing work to cheaper services (i.e. UberCab) because they are not paying licensing fees.<p>3. UberCab can easily recover albeit at lower margins. They need aggressive biz dev to quickly secure licenses. I hope they can continue to disrupt city transportation.

I'm putting money on UberCab becoming a members-only service/co-op type system where you have to be a member in order to request a car. I'm not intimately familiar with the taxi laws, but I bet they don't specify what private organizations can do.

&#62;&#62; Ubercab operates much like a cab company but does not have a taxi license.<p>^ Why is the taxi license process so difficult to go through? Why does it take 10 years or so?<p>&#62;&#62; Limos in U.S. cities usually have to prebook an hour in advance, by law, while only licensed taxis can pick someone up right away but Ubercab picks people up right away (again without a taxi license).<p>^What is this but protecting special interests? Viva creative destruction.

I think UberCab will end up needing to change their name (UberCar?) to distance themselves from the "cab" or "taxi" connotation, and position themselves as an alternative to cabs, vs. a kind of cab, more forcefully.<p>Other than that, I think they now have the moral justification to trash the taxi industry and cartel in their marketing. This can probably end up being a net win for them.

So is ubercab connecting people with "car services" that aren't licensed taxi companies?<p>Are these the drivers you see often in NYC when arriving at the airport? My understanding is that there are risks to using such services (like if you leave something in the vehicle you're unlikely to recover it whereas a taxi co. can usually track it down). True?

ubercab could relocate their business to russia.<p>SF customers and drivers could still pay for the app.<p>let's see them regulate that<p>I want to make a taxi dispatcher that is outsourced to an Indian call centre. These dispatchers don't realize how deeply obsolete they are.

I actually had this idea when I had dropped out of web design and became a taxi driver for a few years in 2001. It's a natural. However: "Taxi dispatchers make money on tips..." is an incorrect statement. Taxi dispatchers make money on BRIBES. Drivers do not tip out dispatchers. Nor do drivers' tips go to the company. What dispatchers euphemistically refer to as "tips" are actually bribes paid to them by some cab drivers to refer the best fares to those drivers - usually at the expense of the passenger, who has to wait outside longer for their cab because a closer driver was not dispatched. The exact reason why UberCab or similar services ARE such a good idea is that they can improve the customer experience by cutting out dispatcher corruption.