Uber and Lyft are utterly destroying the taxi cab industry in New York. Likely, Uber, Lyft, and any other app-based ride sharing services are doing a lot of damage to traditional taxi services. No one should be shocked as to why.Uber and Lyft are a lot less expensive. They are easy to book. The drivers are much more accountable for their actions since they lose a high-paying gig if customers complain too much or leave bad reviews.
The classic taxi cab is just that – a classical, outdated model.
An honest question has to be mentioned here: why don’t the Yellow Cab and other traditional taxis move more in the direction of the Uber/Lyft business model? Unionization and established overhead would probably be the answers. Both of those things can be changed. Union contracts may be rewritten and overhead could be reduced.
And what about the taxi drivers? Could they not jump to the “gig economy?” They could, but the lose of union protections and health and other benefits probably weighs on their mind.
Consumers do make their decisions regarding what particular business or service they choose to patronize. New York doubtfully could ban Uber or Lift. Requiring business licenses, city taxes, and adherence to certain regulations are things likely implemented. Considering the massive amount of money a company can make in the lucrative market of New York, all these extra costs ate sure to be offset by the massive amount of money earned.
And then there is the possibility of a new startup emerging that figures out a way to circumvent any laws and regulations. Such a business may thrive for the short-term. When it falters a new business is sure to pick up where the old one left off.
A dark cloud is looming over the classical model of New York City yellow cabs. Unless a serious approach to addressing the competition arrives, the classic yellow cab is about to become the extinct yellow cab. The gig economy may claim another.