A Social Surcharge – the Downsides of Ridesharing

When I would tell friends in America that Vancouver does not have ridesharing, they would express disbelief. Ridesharing apps have transformed the way most North Americans commute. After a long day at work or a night out, Uber and Lyft have offered a convenient and cheap ride home for nearly a decade. Everywhere, that is, except Vancouver, where ridesharing firms only began operations in January 2020.

I moved to New York just days before the duopoly’s overdue introduction to Vancouver. Ridesharing from JFK to Manhattan was easy and reasonable. But, this means of transportation comes with hidden social costs. Cities that have had ridesharing services for much of the 2010s now grapple with the environmental issues, reductions in disability access, and serious safety concerns that accompany them. Vancouver should thus seize its late-mover advantage, learn from its predecessors, and implement tighter regulations on these firms minimizing these downsides.

This industry can have devastating environmental impacts. In New York daily ridesharing trips increased from 60,000 to 600,000 over three years, while transit ridership showed an almost perfectly proportional decline. This trend can be observed across multiple US markets, where on average bus ridership would drop by 12% in eight years following ridesharing’s entry. Meanwhile, Vancouver, without Uber and Lyft, has experienced some of the fastest growing transit ridership rates. Additionally, a report produced by ridesharing firms, acknowledged that they contributed significantly to traffic congestion, and that only about 60% of kilometers travelled by ridesharing vehicles were with passengers in the backseat.

That means a lot of added empty cars on our roads causing significant environmental impact. Vancouver has taken steps to mitigate this, including a $0.30 pick up and drop off fee, but this does not go far enough. Vancouver’s roads are already some of the most congested, and thus the city should consider charging ridesharing vehicles for distances travelled – disincentivizing cars from driving without customers. Taxes collected from the companies should be earmarked solely for transit improvements.

Ridesharing | Belvedere Tiburon Library

https://www.beltiblibrary.org/do-research/topicguides/ridesharing

Ridesharing does not just harm the environment, it poses challenges for disability access as well. The software can be challenging to use for the blind, and the vast majority of ridesharing vehicles are not equipped with wheelchair ramps. Legally, unlike taxi companies, rideshare firms are not required to maintain accessible vehicles because they do not own the vehicles their drivers operate. To aggravate the situation, accessible taxis are now being taken off the road due to the intense competition posed by ridesharing.

Taxi companies in Vancouver, which are already threatening to do the same, are required to have 19% of their fleets be wheelchair accessible, while conversely rideshares face no such requirements. To improve access for persons with disabilities, Vancouver should provide tax breaks for accessible taxis and ramp-equipped ridesharing vehicles. Research should be undertaken on how accessible vehicle minimums could be legally imposed on Uber and Lyft.

Finally, a number of safety issues plague ridesharing companies. 2019 saw 3,000 sexual assaults reported in Uber vehicles. Worryingly, a recent article outlined how employees responsible for investigating these kinds of incidents are coached to prioritize company interests before those of the affected passenger.

Vancouver has imposed requirements on these companies to complete periodic mandatory background checks, which pales in comparison to the requirements for taxi drivers. While it may be difficult to oblige rideshare drivers to install vehicle security cameras, mandatory semiannual criminal record checks, increased police training, and pressure to build safety features into rideshare applications are all certainly possible.

But, regulating ridesharing is no simple task. There will certainly be pushback from Uber and Lyft, and from consumers themselves who stand to benefit from the affordable means of transportation. As users of rideshare though, we must demand that our governments take bold and innovative steps to check these firms, in ways that do not significantly increase the monetary cost of rides. It is important that we look past the initial benefits of a cheap ride, and think about the long term social costs of these services, which we will all eventually bear if governments don’t act fast.

Despite issues stemming from environmental degradation, a reduction in accessibility, and passenger safety, I continue to use ridesharing here in New York. However, on each of these trips I pay a surcharge of guilt. I thus implore Vancouver’s municipal government to impose tighter regulations on Lift and Uber. Consumers have patiently waited for the government to approve ridesharing, the least we can expect in return is that our legislators have used that time wisely.

 

 

The Way of the Future

Business that’s good for you.

Energy Aware’s Janice Cheam represents a new breed of entrepreneurs. Like all CEOs, she is hungry for success and wildly ambitious, but she is also socially aware. Janice, like many of today’s business graduates is not only interested in money, but also in stirring positive change.

Her firm produces meters that help families measure their monthly power usage and track trends. Energy Aware operates in North America, Europe and even extensively in Australia.

Janice Cheam http://www.newventuresbc.com/2011/08/2006-competitor-energy-aware-on-cover-of-bc-business-magazine/

This is a stark contrast to the common perception of a CEO. As mentioned in my post, “Funny Business”, the world often views businessmen and women in a very negative light; Janice is blowing away those stereotypes.

It was absolutely terrific to see someone so passionate about her work, and about making a difference in the world. Social (or in this case environmental) businesses have featured heavily in my past few Commerce classes, leading me to believe that Energy Aware is not an anomaly but rather part of a growing trend. These businesses are bound to help build a better world by breaking the once established norms and going places unimagined in the last century.

Finally, it’s great to see Energy Aware’s technology a knockout with consumers; interest on both sides of the market will drive environmental innovation and quicken the pace of reform. I look forward to hearing about Janice and her firm’s future success!

Spark: Janice Cheam’s presentation on Energy Aware, Jeff and Paul’s lectures on social enterprise, and Professor David Silver‘s lecture on business ethics.

Fight of the Century

The economy versus the earth. 

While the environmental movement is sweeping the globe, Canada seems to be heading in the opposite direction. Jessica Barry’s post “Canadian Government Speeds Up the Industrial Process brought to my attention the growing favorability of business over the environment in Canada.

Sadly, I can’t say the nature of Jessica’s blog was very surprising. The suspension of environmental reviews for 3,000 projects comes after a long line of similar decisions.

The Albertan oil sands have become the face of the fight between business and the environment http://ngm.nationalgeographic.com/2009/03/canadian-oil-sands/kunzig-text

I find the misnomer that long-term economic growth will come at the expense of the environment pretty baffling. Reliance on natural resources to fuel an economy will lead to declines in other sectors such as manufacturing and services; industries that will support the economy long after resources run dry. Milking the environment will also lead to sharp drops in Canada’s tourism industry which accounts for about the same percentage of our GDP as agriculture, fishing, and forestry combined.

A Canadian postage stamp  depicting a wind farm. http://www.wind-works.org/photos/stp_Canada2005.html

Finally, investing in the development of environmentally friendly technology and energy will decrease our dependency on fluctuating, unstable resource prices in the long run.

Canada is running out of excuses to put commerce before the environment, and fast running out of time to pull away from the troubles that this will inevitably cause.

Spark: Jessica Barry’s Post and Harper government cancels 3,000 environmental reviews on pipelines and other projects