Today Seacoast Online reported a story about a 63 year old grandmother who is believed to be the first Uber driver cited in Portsmouth. Two young women called for an Uber rideshare and within minutes they were pulled over, ordered to get out of the vehicle and the grandmother fined $500.
Despite a ‘glorified ban’ on Uber drivers by the Portsmouth City Council, consumers are still demanding the ridesharing service and some drivers are still providing it. This summer the city council passed an ordinance that required Uber provide proof of insurance and proof of background checks on all drivers. Uber has not provided this information yet drivers and consumers are still conducting business as usual. Why? Because consumers in Portsmouth didn’t ask for the new regulations, they already like Uber as it was.
In case you aren’t familiar with Uber, it’s a ridesharing business in which private citizens use their own personal vehicles to pick up passengers who request their services and take them where they want to go. There is a software application that uses PayPal to pay the fee and shows a potential client who the local Uber drivers are in the area; how far away they are and even shows their approval ratings.
Unlike taxi services, Uber provides information about the driver, their whereabouts and even a quote before a consumer makes the decision on whether or not to use the service. Uber is not only across the country but around the world and has become extremely popular with consumers. Why? Because Uber provides things licensed taxi companies don’t always provide: good service, clean cars, easy payment and details about the trip from beginning to end.
The only reason Uber has become a thorn in many places is because taxi drivers have a monopoly on the licensing or ‘medallions’ of towns. The government created a monopoly by selling the rights to drive a taxi and only a few were able to afford this ‘privilege.’ Until Uber came along. Uber started as private citizens simply making a contract between each other for services provided. Almost like babysitting. You watch my kid and in return you’ll receive money or goods.
Uber has clearly filled a consumer demand that wasn’t being met by licensed taxi drivers which is why taxi companies aren’t so thrilled. In Portsmouth and other cities, the local politicians have tried to do what they can to stop Uber but many are ignoring the new ordinances. If consumers are demanding a specific service and there are people willing to fulfill that need, who is the city council to stop it as long as it is not hurting anyone?
Uber is something taxi drivers are not, competitive. If an Uber driver gets low scores, they aren’t going to get business. There is no scoring of taxi drivers. You take what you get and like it. Uber clearly brings a new dimension to the consumer market and people are happy with it.
Unfortunately the Portsmouth City Council doesn’t believe in competition and would prefer consumers have fewer choices thanks to their licensing scheme. Regardless of the rules, both consumers and Uber drivers are still working together.
The video below explains some of the story by Christopher David:
[youtube http://www.youtube.com/watch?v=8rdLKYfWJmQ]
For more information you can go to www.freeuber.org