Though not without questions (ill be researching more thoroughly now), Im genuinely excited that Uber has come to West Michigan, and think itll be a really good thing for our area. My plan is to rapidly get up to speed, and likely participate in their premium black service. But at the taxi level, one thing Ive learned through my limo business is that there are many, many people who need access to better transportation options, especially at a price point below the quality of our service and equipment (which is what it is, and at that quality absolutely cannot be done for a lower cost--and if anything is still too low). Access to transportation for many people, is a serious need, and this should help. Uber seems environmentally efficient, too, because many personal vehicles are underutilized (whereas we run our cars much, and they will be used up in terms of their ability to be luxury vehicles relatively quickly--just the nature of providing only late-model luxury). In other words, my true costs of every trip are both the normal fixed costs of vehicle ownership and maintenance (and those added as a limo certificate holder), but because our vehicles are solely and regularly used in this function we have to fully recover variable costs; but that is not true if you use your personal vehicle incidentally; thus, it is efficient and a good thing environmentally and economically to use that excess capacity. But I digress. My guess is that some taxi cab companies will be going away at the least. But as economists call it, it is creative destruction. My only caveat is insurance, licensing, and compliance--that the playing field must be level. As I read Michigan law, and I have many times, the lower level Uber services use of personal vehicles does not seem compliant with state laws regarding what must be done for each vehicle that is used for paid livery service (for hire) passenger transport. freep/article/20140516/BUSINESS06/305160179/Uber-Lyft-Detroit-agreement
Posted on: Sat, 26 Jul 2014 17:55:37 +0000
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