Uber tops taxi use for business travelers: Report

[Tugg Speedman]

From an idea to surpassing taxis among the most price insensitive riders in five years.

They are one of the greatest business stories you will see in your lifetime.

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Uber tops taxi use for business travelers: Report
http://www.cnbc.com/2015/07/16/uber-tops-taxi-use-for-business-travelers-report.html


Taxis are losing business travelers to ride-hailing services like Uber, a survey shows.

In the three months ended in June, Uber overtook taxis as the most expensed form of ground transportation, according to expense management system provider Certify. Uber accounted for 55 percent of ground transportation receipts compared with taxis at 43 percent.

That's a big jump from just the beginning of the year. In the first quarter, Uber Technologies had 46 percent of receipts tracked by Certify compared with 53 percent for taxis.

"Established travel providers will need to adapt quickly or face further market share erosion to the sharing economy," Certify CEO Robert Neveu said in a statement.

Certify based its finding on the 28 million trip receipts its North American clients submit each year. It does not include receipts from business travelers whose companies use other services to track expenses.

Uber connects travelers with various cars through its smartphone app. Some drivers work for car service companies; others spend a few hours driving their personal cars on the side for some extra money.

Business travelers might be quickly moving toward Uber, but employers still have reservations about safety and liability. Depending on the city, Uber drivers aren't necessarily regulated by government taxi licensing authorities. Both Uber and competitor Lyft insure their drivers during paid rides and also require the drivers to carry personal auto insurance that covers them the rest of the time.

In a few cities, Uber beat out taxis by a wide margin for business travelers. In its home town of San Francisco, 79 percent of rides expensed through Certify during the second quarter were for Uber. In Dallas, 60 percent were for Uber and 54 percent in Los Angeles. Certify noted that it saw rental car transactions drop at the same time.

[ChitownSpaceForRent]

Does this really surprise anybody? No? Moving on then.

[chapman]

Does this really surprise anybody? No? Moving on then.

A little - just because, as Heisenberg pointed out, business travelers are insensitive to price.  Many believe Uber's competitive advantage is far and away the lower cost.  You could see business travelers just grabbing the first cab they see at the airport or on the street; they aren't paying for it.  This tells us there's more to Uber, and it really is game-changing as more than a low cost option. 

[deerchaser]

A little - just because, as Heisenberg pointed out, business travelers are insensitive to price.  Many believe Uber's competitive advantage is far and away the lower cost.  You could see business travelers just grabbing the first cab they see at the airport or on the street; they aren't paying for it.  This tells us there's more to Uber, and it really is game-changing as more than a low cost option.

What I'm most curious to see with regards to Uber is how it fares once it takes off with the general public. My sense (and this may be incorrect) is that Uber is still a fairly elite service.  I can't imagine that your general Joe Schmo that needs a taxi to get to the doctor or to the grocery store because their city's mass transit is non-existent/useless is using Uber.  I wonder how long Uber drivers will continue using their personal vehicles for this service once the clientele becomes more comparable to the general taxi clientele.

[Tugg Speedman]

What I'm most curious to see with regards to Uber is how it fares once it takes off with the general public. My sense (and this may be incorrect) is that Uber is still a fairly elite service.  I can't imagine that your general Joe Schmo that needs a taxi to get to the doctor or to the grocery store because their city's mass transit is non-existent/useless is using Uber.  I wonder how long Uber drivers will continue using their personal vehicles for this service once the clientele becomes more comparable to the general taxi clientele.

If you live in an Urban center, Uber has already taken off.  In New York City, Uber is the way you live your life.  It took off because it is cheaper than taxis, so it is the opposite of elite.

I live in Lincoln Park neighborhood of Chicago and between my wife, my kids and myself, we probably use Uber 10 to 15 times a week.  Almost everyone I know that lives in the city is the same.  Our car stays in the garage more than ever (as Uber is cheaper and easier).

See the next story, Uber has 19,000 drivers in NYC alone and they are clogging traffic.  Uber is affecting every one of the 8 million people in NYC (Uber says they have over 160,000 drivers nationwide.)

(side note, yet another story that shows how economically illiterate and corrupt city government is)

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City council wants to cut down on Uber cars
The New York Post

http://nypost.com/2015/06/23/city-council-wants-to-cut-down-on-uber-cars/

The number of Uber cars and other such vehicles hitting the streets could be curbed under new City Council legislation that would fight congestion by slowing down the rapidly growing black-car industry.

The bill, backed by the Taxi & Limousine Commission, would cap the number of black and livery cars allowed to pick up riders.

Bases with 500 cars or more, such as Uber and Dial 7, would be able to add more vehicles at a rate of only 1 percent a year.

About 25,000 black and livery cars have been added to the streets since 2011, when Uber began operating in New York City.

The app-based service has almost 19,000 drivers that work for its bases.

Another new council bill would study the impact of the expanding industry on traffic jams. If the study is not finished by August 2016, the restriction will be lifted.

Average traffic speeds in Manhattan have dropped from 9.35 mph, already a crawl, to 8.5 mph, according to the Department of Transportation.

MTA buses have also seen a 5 percent decline in their speed.

The yellow-taxi industry and its drivers union have been vocal in calling for an Uber cap, claiming that the cars do nothing but clog the roads.

“No one can move around,” said Bhairavi Desai, who heads the New York Taxiworkers Alliance.

“The cars are spending more time idling in traffic and just cruising. Drivers are working more hours for less income, paying more for gasoline and facing greater health risks, such as kidney failure, back pain and respiratory illnesses.”

Council members Stephen Levin and Ydanis Rodriguez will introduce the legislation later this month.

Uber said the idea would hamper developments by the company to improve transportation and would negatively affect drivers who want a job.

“This would reverse improvements made by Uber and others to our transportation system, and, most notably, stand between New Yorkers looking for work and their opportunity to make a better living,” spokesman Matt Wing said.

[source?]

What I'm most curious to see with regards to Uber is how it fares once it takes off with the general public. My sense (and this may be incorrect) is that Uber is still a fairly elite service.  I can't imagine that your general Joe Schmo that needs a taxi to get to the doctor or to the grocery store because their city's mass transit is non-existent/useless is using Uber.  I wonder how long Uber drivers will continue using their personal vehicles for this service once the clientele becomes more comparable to the general taxi clientele.

If I go further than a half mile from my house when I'm out on Friday/Saturday, I use uber. Cheap, easy, don't have to worry about if the driver takes only takes cash (a real problem I've had with taxis).

[ChicosBailBonds]

A little - just because, as Heisenberg pointed out, business travelers are insensitive to price.  Many believe Uber's competitive advantage is far and away the lower cost.  You could see business travelers just grabbing the first cab they see at the airport or on the street; they aren't paying for it.  This tells us there's more to Uber, and it really is game-changing as more than a low cost option.

Doesn't surprise me at all.  It's more about convenience than price, but price is also important to business travelers.

The thing with Uber, price is going to become less of an advantage as the new regulations are rolled out and they become scrutinized under the heavy hand of gov't moving forward.  Already starting here in California with new rules and regs.

[Hards Alumni]

Its easy to get ahead when you don't follow the same rules as the rest of your competitors.

Should there be major reforms to taxi regulations?  Absolutely.

[4everwarriors]

I was talkin' to a dude who used an Uber rickshaw in Tokyo. Couldn't stop ravin' 'bout the cleanliness of the carriage and savin's, hey?

[Tugg Speedman]

Its easy to get ahead when you don't follow the same rules as the rest of your competitors.

Should there be major reforms to taxi regulations?  Absolutely.

Correct, taxis need to move toward Uber and not the other way around.

[ChicosBailBonds]

Correct, taxis need to move toward Uber and not the other way around.

Govt out here in California is already forcing Uber to go more like the taxis.

[MUsoxfan]

Taxis shot themselves in the foot. They didn't evolve at all and even went so far to regress. I can't remember the last time I got in a taxi that wasn't filthy, uncomfortable and didn't have a guy holding a loud Bluetooth conversation in another language. And that's if the dispatcher could properly get a cab out

Uber is just better in every way

[ChicosBailBonds]

Taxis shot themselves in the foot. They didn't evolve at all and even went so far to regress. I can't remember the last time I got in a taxi that wasn't filthy, uncomfortable and didn't have a guy holding a loud Bluetooth conversation in another language. And that's if the dispatcher could properly get a cab out

Uber is just better in every way

I take both, but prefer Uber.  I was in a cab in Paris a few weeks ago, very clean.  In New York last month, surprisingly clean.  Cab in L.A. two weeks ago, very clean. They know what is up.  Flying to New York on Sunday and will cab it into the city. 

[Tugg Speedman]

e Blasio’s Push to Curb Uber in NYC May Get Vote This Week
By Freeman Klopott and Henry Goldman

(Bloomberg) -- The New York City Council may vote as soon as this week on Mayor Bill de Blasio’s plan to limit the growth of ride-hailing service Uber Technologies Inc.

No decision has been made on whether the measure will come up at the council’s next scheduled meeting Thursday, said Eric Koch, a spokesman for Speaker Melissa Mark-Viverito. The bill would first have to clear the transportation committee, where it has the support of Chairman Ydanis Rodriguez, an outspoken Uber critic backed by the yellow-taxi industry. De Blasio said Monday that he wanted the council to vote “as quickly as possible.”

The measure would restrict the growth of fleets with 500 or more cars to 1 percent while city officials conduct a study on traffic congestion, which would be due April 30. While the limit would affect all for-hire ride services, including traditional black-car companies like Carmel and Dial 7, the biggest loser would be San Francisco-based Uber, which has grown to include 19,000 vehicles and is expanding about 3 percent a month.

“There are already many more Uber vehicles than there are yellow taxis in New York City, and that’s just happened in a few years time,” de Blasio told reporters Monday. “There are a lot of unintended consequences we’re starting to see in terms of congestion and pollution.”

City Comptroller Scott Stringer on Tuesday called for the vote to be delayed.

“It makes no sense to arbitrarily cap Uber and other for-hire vehicle companies before we study the impact of congestion on the streets of New York,” Stringer said in a statement. “We need to make sure that our transportation system works for everyone, including the City’s traditional yellow cabs, for-hire drivers, and most importantly the riding public.”

Booming Business

The growth of Uber, which began operating its mobile app-based service in the city in 2011, is part of a boom in for-hire vehicles, which have ballooned 66 percent to 63,000 since 2011. City officials say that without regulation, the number could surge to 100,000 in five years.

The legislation is the latest battle in a fight between the traditional taxi and limousine industry, which gave de Blasio’s 2013 mayoral campaign more than $500,000, and digital ride-sharing companies like Uber and Lyft Inc. The taxi industry also donated more than $150,000 to council members, including more than $27,000 this year to Mark-Viverito.  Rodriguez received $8,500 in 2013.

Uber executives say the measure threatens its business model and shows a lack of support for the city’s technology industry, which accounts for about 300,000 jobs and $30 billion in yearly wages. The company has been running television ads that depict de Blasio as captive to his campaign donors and hurting job growth, especially in boroughs outside Manhattan.

“Tell Mayor de Blasio: You promised to end income inequality,” the ads say. “Don’t put taxi donors ahead of jobs.”

Wal-Mart Comparison

De Blasio has fired back, equating Uber to multinational companies like Wal-Mart Stores Inc. and saying unchecked growth could make the jobs Uber is bringing to New York less valuable as the battle for fares intensifies.

“There’s a lot of people in the private sector who’d like to have no government regulation whatsoever, but that’s always proven to be a huge mistake,” de Blasio said Monday.

This isn’t the first time the mayor has gone after the company. In May, he backed a plan to require Uber, Lyft, and other ride-hailing services to get city approval for changes to the user interface on smartphone apps. The city dropped the plan after a backlash from technology companies, including Facebook Inc.

Founded five years ago with venture capital funding, Uber has grown to serve more than 300 cities worldwide, stirring conflict with traditional taxi and car-for-hire businesses. It has said its market value is $50 billion.

[WarriorInNYC]

I'm a frequent business traveler and generally price insensitive.  When grabbing a taxi to/from the airport I get an uber for several reasons. 
1) The cars are generally nicer and the drivers generally more friendly
2) Convenience:  I don't have to argue with the cab driver about paying with my AMEX or fumble with cash
3) Points: I earn 2x AMEX points with Uber and earn SPG points when taking an Uber during a stay at SPG properties

To be completely honest, if I'm bouncing around Manhattan and I need a cab ride thats around 10-15 minutes, I just flag a taxi quick.  Anything longer than that, I use uber.  Any other city, I use uber.

[ChitownSpaceForRent]

Can someone why people are trying to limit Ubers? Is it just jealous taxi drivers or is it more then that?

[chapman]

2) Convenience:  I don't have to argue with the cab driver about paying with my AMEX or fumble with cash

To be completely honest, if I'm bouncing around Manhattan and I need a cab ride thats around 10-15 minutes, I just flag a taxi quick.  Anything longer than that, I use uber.  Any other city, I use uber.

HATE when cabbies pretend you can't pay with a credit card or that they hit the cash button so now it's too late.

I love the NY subway system.  Only take a cab when someone else insists on it and is paying for it.  Only walk a bit too far for my taste is to get to the better hangouts in the East Village.

[ChicosBailBonds]

Can someone why people are trying to limit Ubers? Is it just jealous taxi drivers or is it more then that?

The argument is that they aren't necessarily vetted as drivers, their cars aren't vetted to understand if they are in decent shape, don't go through the regulatory hurdles that taxis do, contract employees vs permanent employees, etc, etc

Those are some of the arguments.

Some media types have slammed them as well..... http://newsbusters.org/blogs/julia-seymour/2014/07/03/lefty-media-slam-parasitic-ridesharing-companies-uber

[Tugg Speedman]

Uber 1, Progressives 0
A public outcry forces de Blasio and the taxi cartel to back down.
July 22, 2015 7:27 p.m. ET

http://www.wsj.com/articles/uber-1-progressives-0-1437607639

Regulators and taxi lords everywhere have sought to regulate the car-hailing company Uber out of existence, and on Wednesday they failed again: New York City Mayor Bill de Blasio’s plan to help yellow cabs stymie competitors imploded amid public outcry. Score one for consumer choice.

The New York City Council this week dug around for votes in favor of legislation that would cap the number of new for-hire vehicle licenses. Uber, for instance, would only be able to add 201 cars over the next year, a pittance compared with the area’s about 20,000 drivers offering some 100,000 rides a day. The ostensible purpose was to allow the city Transportation Department time to study how such services affect traffic congestion.

The real motivation was taxi interests. The price of New York taxi licenses, known locally as medallions, has dropped nearly a quarter in recent years from a high of $1.3 million in 2013, as more consumers switch to summoning a car on a smartphone instead of hailing a cab. This is called competition, and taxis want to recoup market share by stifling alternatives.

Mayor de Blasio and the far-left City Council Speaker Melissa Mark-Viverito went along for the ride despite their supposedly progressive politics. It must be a coincidence, comrade, that the yellow taxi industry has lavished campaign contributions on both of them.

As for congestion, Uber makes up less than 1% of cars on the road. Politicians blamed ride-sharing services by showing that speeds in Manhattan have slowed 0.84 mph since 2010, to 8.5 miles an hour. What they didn’t mention is that average speeds hovered around 8.5 miles an hour in 2008, before the recession took cars off the road for a few years.

Uber punched back, debuting a “ DeBlasio” feature on its app that showed how today’s two-minute wait for a ride could turn into half an hour, and blasting out ads. Soon enough the public that has grown accustomed to using this convenient service piled on, and disapproval ranged from model Kate Upton to New York Governor Andrew Cuomo.

Mayor de Blasio backed down, and the two parties struck a deal after a city hall meeting on Wednesday. Uber says it will release more detailed data to collaborate with the Transportation Department in a four-month traffic study. The legislation imposing caps is tabled—for now.

This classic restraint of trade would have curbed well-paying job opportunities for New Yorkers and frustrated consumers, particularly those in outer boroughs where yellow taxis seldom venture. Uber will need to add thousands of vehicles over the next year to keep up with the 25,000 customers in the city using the app for the first time each week.

Uber has fought similar efforts in other cities, and the protectionists will no doubt pop up again. Meanwhile, savor another illustration that the highest priority of progressive politics is so often to use the power of government to serve the powerful.