Uber is a great business. If you’re not familiar with it, it’s fairly simple – use your iPhone to summon limousines. The start=up has been expanding across the nation but is facing difficulties fighting taxi lobby interests in Washington DC.
Two days ago it became known that the DC Council was planning to legislate price floors into Uber’s business model in order to limit their competitiveness against the taxi industry.
Yesterday, as a result of a massive online backlash, the plans have been shelved – for now.
At today’s D.C. Council breakfast, several members mentioned that since Kalanick’s email went out, they were inundated with impassioned emails from Uber customers. Jack Evans (D-Ward 2) said he has received more than 5,000 notes.
The amendment would have mandated that luxury sedan services charge no less than five times the minimum of the $3 flag drop collected by standard taxicabs on rides that are measured by time and distance. Uber’s pricing model includes a $7 base fare plus $3.25 for each mile traveled and 75 cents for each minute a car is hired, with a $15 minimum for all fares.
What does this all have to do with driverless cars, you ask?
Uber.com is seen by many as a precursor to driverless cars. The app uses functionality similar to what we’ll see in driverless cars but more importantly, it presents new competition to the taxi industry.
The taxi industry is seen to be one of the biggest pillars of potential opposition to driverless cars due to their lobbying power and general industry corruption (side thought – why is the US so tolerant of corruption compared to other Western nations? It’s mind-boggling.)
Taxi companies themselves will probably seek to get in on the driverless car rush (and it will be a rush – the commercial imperative is too great) which should mitigate many of the potential issues with entrenched lobby groups.