No, it does not refer to
young girls being taken across territorial lines for purposes of prostitution.
Rather, a new form of transportation. Uber. Same name as the company.
Uber is a whole new
concept in shuttling people around who need transportation from one point to
another. Similar to a cab. Yet not a cab. So claims Uber.
Uber had its
beginnings in 2009 in San Francisco. One of its its founders, Travis Kalanick,
is CEO. Senior Vice President is David Plouffe. Plouffe is an
experienced political operative. Plouffe was one of Obama's chief
political strategists. He knows how to mobilize political support.
Uber refers to
itself a new type transit provider, a transportation network company.
Technologically driven. If one needs a ride and has a smart phone, the process
is simple. There is an app on the phone. Push a button and a vehicle
shows up to take you where you want to go. The slogan, Tap an App.
Generally quicker and at half the price of a cab.
Uber has grown
dramatically since 2009. Money initially was invested by outsiders in the
millions. Now in the billions. Uber is presently valued at $41
billion. By the end of 2015, it is anticipated further billion dollar investments
will be made. Uber's value is expected to rise to $50 billion.
Uber presently
operates in over 300 cities covering six continents.
Uber does not screw
around when it wants to do business in a State or City. It generally either
comes in unannounced or gives a city a reasonable amount of time to make up its
mind that Uber can do business. If a city says no, Uber literally
storms in with an army of lobbyists and lawyers. Sharp elbows the order of the
day.
Most states/cities have
rules regarding cab services. Uber says it is not a cab. It also says
it cannot wait months or years for local laws to be cleaned up so
they can operate. Regardless of size, few cities can play tough for only
so long with a $41 billion company accustomed to getting its way.
Uber's primary tool
is the power of back room lobbying. The art of political influence. The
reason Plouffe is on board.
Uber has a presence
in almost every State house. Two hundred fifty lobbyists and 29 lobbying
firms in State capitols. One third more than Walmart.
Uber has expanded
internationally also.
Uber has a local
rules be damned attitude. They are experienced, know what is legal, what the
law permits. They have a package that sets forth steps necessary so it can
operate in an area. The troops are sent in to get things done if local
cooperation is not forthcoming. The troops all heavy hitters. Well connected.
Portland, Oregon was a
problem. Uber hired Dan Bates to lobby for the company. Bates
was Portland's lobbyist in the capitol. In Kansas, Uber used Governor
Sam Brownbeck's former campaign manager as its lobbyist. The man was
also a lobbyist working for KOCH industries at the time. In Connecticut, Uber hired
the House Speaker's firm. In Illinois, a former Governor's Chief of
Staff.
Examples of
how Uber spends its money promotion wise include the State of
Texas. In 2013, Uber had no registered lobbyists in Texas. In 2014,
14. Thus far in 2015, 28. Lobbyist contracts are speculated to cost Uber for
2015 in the area of $420,000-$945,000. More money than Philip Morris or
Pfizer spends.
In 2014 in Maryland, Uber paid
its lobbyists $208,000. In California, $684,000. Uber spent $600,000
in a Seattle referendum. Lobbying efforts cost them for city purposes alone in
Washington, DC, $314,000.
The Philippines approved Uber in
May. The Nevada Assembly passed a bill in May legalizing Uber service.
It is expected the legislation will pass easily the Senate and be signed by the
Governor.
Paris itself and France a
war. Both presently oppose Uber. Paris taxi drivers a strong political
influence. They struck to express their opposition. The Netherlands,
Italy, Indonesia and South Korea are investigating Uber and obtaining
court ordered bans against the company. I question how long these countries can
hold out against Uber. Especially the Asian ones. Billions of Chinese
dollars are invested in the company.
Taxi drivers in many
places make $6 an hour. In those same places, Uber drivers earn $16
an hour. Some taxi companies require drivers to pay upfront costs each day.
Approximately $175. The first $175 taken in goes to the company to cover the
cost of the vehicle, dispatch costs and insurance costs. Then the driver makes
money for himself. Could be as much as $200 a day or significantly less.
Taxi drivers and taxi
companies are the one's opposing Uber. Customers generally like Uber's service.
Quicker and cheaper. Uber knows how to get the populace on its side
and to continue supporting the company after it is allowed to work in a
city. Petitions are used. As in politics. People love Uber and are
happy to sign petitions supporting Uber's aims.
This is not the Biblical David
and Goliath situation. Cities are the David’s. They cannot stand up to the
Goliath Uber.
This brings me to
Key West. Since December 14 last year, there have been Uber vehicles
operating in Key West. Local cab companies raised hell. Key West stood for
their locals. Not realizing the people working with Uber were
generally locals also.
Key West has an ordinance
requiring passenger vehicles for hire to have a decal or permit authorizing
their use as same. A violation of the ordinance is a crime. A misdemeanor. The
penalty a fine of $200 and/or up to sixty days in jail.
Key West invoked the
ordinance. Two undercover Key West police officers arrested two drivers.
Their cases are pending. Local authorities also have warned that as
of July 1, all persons violating the law will be arrested.
There are four cab
companies in Key West. The number of permits is 56 or 74. I could not determine
the actual number. The four companies own all the permits. There is no room for
a new type transportation company. Assuming the ordinance applies to Uber.
Uber is not a bad
guy. It is a good company that discovered a new way of operating a
transportation business. A way that provides cheaper prices and quicker
pick up time to customers.
Uber does play hard
ass. It could not stay in business if they had to screw around ad infinitum with
different local and State ordinances to get their business going in a
particular locality. Uber has invented the better
mouse trap. They come into a community and say we have something new and
better. Which they do. This is what we
would like to do and we know how to do it.
Key West in fighting Uber is
merely putting off the inevitable. Uber succeeds in the end because
it understands its business. Legally and other wise.
Key West must keep in
mind what happened in a similar situation several years ago. The Duck Tours
case. Cost Key West $8 million. Uber and the Duck matter have many
similarities.
Then there are the more
recent food truck cases. Key West said the operations were restaurants and
needed local approvals. The owners said no. We are motor vehicles. The court
agreed, ruling food trucks were motor vehicles. The city lost. Not an $8
million beating. Fortunately.
It is a new time. The
world progresses. Uber has what appears to be a better product for
all concerned. I am not saying put the cab companies out of business. No,
merely let Uber compete with them fair and square. I believe 5-10
years down the road, cabs as such will be a thing of the past. They will not be
able to survive against the tide. Technology as Uber represents will
have taken over. Uber and similar companies will be the
transportation vehicles of the new day.
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