Powered by Real Times Media
www.AtlantaDailyWorld.com
Uber Cars to Give Taxi Industry a Run for the Money
July 3 - 9, 2014
Volume 86 • Issue 47
By Terry Shropshire and Roz Edward
Are taxis about to become extinct like the typewriter and VCR? The answer is ‘yes’ if you believe the mayors of big cities like New Orleans and Atlanta, but it will first have to brave a heavyweight battle from the all-powerful taxi lobby. The Uber is bringing the fight to the taxi industry to Atlanta and many other major cities across the country and may cause the demise of the taxicab industry which has monopolized the mobile transportation industry for over a hundred years. Uber cars is an on-demand transportation service which appeals to a more budget-conscious traveler. Many Atlantans are using the cars instead of traditional taxi cabs, which keep their meters running and charge passengers while sitting idle in Atlanta’s horrendous traffic. Users order a car with an application on a phone and no cash is exchanged: it’s all done electronically with a credit card already on file. Traditional cabs are often reluctant to accept credit cards. On the top end of Uber service, an SUV trip in an automobile such as a Lincoln Navigator starts with a $14 base fare, plus $1 or $4.25 per mile after that, depending on how fast
the car is traveling. Those opting to use UberX, which sends a more casual car, like a Toyota Camry or Honda Accord, the base fare is $3, and $2 a mile after that if the car’s going more than 11 mph. If you’re crawling along at under 11 mph, it’s 35 cents a mile. “I absolutely love it,” said Maria Joyner of Brookhaven, a marketing vice president for a tech startup. “I love that I can push a button and a car appears.” Mayor Kasim Reed also sees the beauty and the value in the transportation alternative although he anticipates an intense battle over taxicab deregulation. Reed said in a statement: I think they’re going to fight a 15 round fight, and I think that Uber’s going to win. And the taxicab industry is going to have to change and get more flexible. But in the interim, they’re going to flat out fight it out, and mayors are going to be in the middle of it, because the taxicab industry is so old and staid and never had real competition, and now it’s being forced to innovate. Uber has a real challenge. Uber has to maintain the level of quality that made Uber the brand it is today. And I think that
at this point in the life cycle of that business, and that space, they haven’t had time to go out there and do five years and seven years and eight years to see, is your Uber experience the same. Because I had one the other day that was pretty close to a cab. So they’re going to have to fight that out. I know that I’m going to get a mean letter, Uber. I love you. Mayor Reed expects the fight to get as dirty as a close presidential race that will include comparableand ruthless mud-slinging. “I tell you, Uber’s worth more than Sony, but cab drivers can take you out,” he said. “So you’ve got to [weigh that]. Get in a cab and they say, ‘Well that mayor, he is sorry.’ You come to visit Atlanta, they say, ‘Well that Mayor Reed is as sorry as the day is long. Let me tell you how sorry he is while I drive you to your hotel. And I want you to know that crime is up.’ This guy might knock you out.” “I want you to know it can get really real. It’s not as easy as it looks,” Reed added.