Published September 22, 2012
Economics , Politics , Transportation
I’m a fan of the Uber startup. For a running expose of the corrupt Washington DC politics, there is no better source than Megan McArdle:
As I chronicled in the Atlantic six months ago, upstart limo dispatch service Uber is embroiled in a long-running war with the DC taxi commission. Uber allows you to order a sedan service from your smartphone, and is much beloved by affluent DC DINKs. It is also a favorite of the limo drivers, who like being able to get rides at good pay rates, and without paying kickbacks to the dispatchers. A couple of nights ago, I took an Uber to a work event (you still can’t reliably get a cab in my neighborhood), and the driver told me that he’d just bought the shiny new Lincoln he was driving to strike out on his own. Uber is what made that happen, according to him; under the old system, it was hard for drivers to go solo, because there are network effects in black car services-; large services tend to get most of the clients. He was beaming as I inspected his brand new wheels, as proud of that car as if he’d baked it himself.
However, Uber is not beloved of DC taxi drivers. As Bob McNamara of the Institute for Justice told me, “Like any other business, taxi drivers think it would be great if no one could compete with them.” Taxi drivers and owners provided a lot of support for our current Mayor, Vincent Gray, in his hotly contested primary race with former Mayor Adrian Fenty. (They also seem to have offered some illegal support to the city council staff; one member’s former aide got jail time for accepting bribes.) The commission has become quite cosy with the industry incumbents in recent years, to the point of issuing a de-facto moratorium on new taxi and limo licenses. The election did nothing to reverse that relationship.
The taxi commission has been gunning for Uber since last year, when they launched a “sting” featuring Commission head Ron Linton, which ended in the unlucky driver having his car impounded. Originally they said the service was illegal because you couldn’t use a black car to charge for time and distance; when Uber’s supporters pointed out that the taxi code contained a “sedan” designation that seemed to allow black cars to do just that, they suddenly came up with a new rationale: Uber was illegal because it didn’t offer you a paper receipt. I was unable to find an Uber customer who expressed any desire to have a paper receipt, but perhaps they are out there, frantically lobbying the taxi commission.