From CBC “Uber Faces More Delays in Vancouver”
Ever since the Uber craze started in around 2010, virtually every major city in the world has adopted the app and its novel idea of connecting “freelance drivers” with consumers. Whether you’re in San Francisco, London, or New York, the Uber app allows you to conveniently hitch a ride with the simple tap of a button and the nearest driver will come pick you up. Seems like a great idea right? Well, apparently not according to angry taxi drivers around the globe and . . . the BC government.
Despite serving over 500 cities worldwide in 66 countries, Uber has had unbelievably hard luck when it comes to breaking into the Vancouver market. Time and time again it has had its license approval rejected by the BC government and the Vancouver City Council after relentless lobbying by representatives in the province’s taxi industry. After its latest rejection earlier this month, it appears that Uber’s patience with the province’s stubborn opposition has reached a breaking point. Using unusually strong language, Uber’s chief advisor, David Plouffe, warned that BC will fall behind the rest of the world if it doesn’t allow the ridesharing app soon.
As mentioned in fellow student Kevin Li’s blog post on the emergence of freelance drivers , the emergence of disruptive technology will inevitably compete and in many cases, replace traditional industries. The taxi industry is only one of many examples in which the emergence of technology such as the smartphone, has changed how the service is offered. Having been in China this past summer, I agree with Kevin on just how shockingly low the taxi rates in China are compared to the rates in Vancouver. Because of the fact that the rates are really high in Vancouver, riding taxis is not really a viable alternative to say taking the bus. I believe this really is a significant problem that should be addressed in Vancouver because the whole concept of taxis is to provide people an affordable alternative to a) driving themselves and b) taking the bus.
Would allowing Uber in Vancouver potentially close the existing vacuum? Possibly because freelance drivers will offer much needed competition to the existing oligopoly in Vancouver’s taxi industry and to gain market share, freelance drivers will need to offer lower rates. From this perspective I can understand why Uber is so eager to enter the Vancouver market, but what I found very interesting was Uber’s warning that BC will fall behind if it does not enter BC. This to me sounds like a melodramatic marketing ploy of Uber positioning itself as a technology company who will offer disruptive tech such as autonomous driving when it is really just a service company.