One obvious issue arising from the increase in ridesharing companies is the impact it will have on the taxi industry. The taxi industry is highly regulated by the government including how many cars they can put out and how much they are allowed to charge. Taxi drivers are mandated to obtain special licensing as well as attend special courses just to be allowed on the road. As of right now, most ride sharing drivers are not required to meet any of these regulations along with many others. Some taxi drivers are already seeing a financial impact and the debate is reaching government levels. Jon Brook's article "Will 'Ride Sharing' Kill San Francisco's Taxi Industry?" highlights the frustration that taxi driver's are feeling since Lyft, the Ride Sharing App, started in their city in 2012.
“On the streets of San Francisco, what might be called the “Mustache War” has begun, pitting the traditional taxi industry against the networked ride services like Lyft (of the pink mustache), Sidecar and UberX. In September, the California Public Utilities Commission approved regulations to oversee the ride-service startups, which allow passengers to hire private drivers through smartphone apps.”
San Francisco drivers aren't the only ones feeling an impact. In the article "Taxis vs ride-share: How one cabbie views the industry's transformation", Frances Nazarian of Los Angeles says that business is slower since ride-sharing came to town, but she is more bothered by what she sees as unfair competition.
“The likes of Uber don’t have nearly as many regulatory hoops to jump through. Unlike taxis, they can raise their prices during peak times, and they can pick and choose which rides they accept and which neighborhoods to serve.
“I guarantee I could get on the Uber app right now and call from where we are right now, South Central, and not one Uber driver would take that call, or Lyft or Sidecar,” said Nazarian. “Basically, they want to work in the most affluent areas of town.”
Uber has been advertising for drivers in LA, promising they can make up to $60,000 a year.
That’s twice what Nazarian averages.”
San Francisco established their Sharing Economy Working Group in March of 2012 whereas Portland has chosen to wait and see how other cities regulate before allowing ride sharing.
What do you think? Are taxis at a disadvantage? Do you see similar issues arising in other areas of the sharing economy?