On Tuesday, hours after Uber Seattle’s users and drivers celebrated a deal that lifted a city-imposed cap on the number of ride-sharing vehicles allowed on the road, Uber Boston representatives were meeting with Cambridge officials to discuss proposed rules the company says could “shut down” its operations.
The Boston area’s tech and innovation community lashed out immediately, condemning Cambridge Mayor David Maher for letting the city turn its back on such a well-liked product, Uber. Though Maher called the first of what could be many meetings, the start of an ongoing dialogue between city officials and Uber, the fact remains: many – if not all – Uber supporters in Cambridge are anxiously waiting for a resolution.
Could the proceedings in Seattle have provided just that?
While the Seattle agreement announced June 16 stills needs to be approved by the city council, it looks as if this step is but a mere formality. “We’re really pleased that the city has chosen innovation over stifling it,” Uber Seattle General manager Brooke Steger told the Pudget Sound Business Journal.
In Seattle, city officials were reportedly considering limiting the number of rideshare drivers allowed to operate. The agreement, ultimately, did no such thing; rather than put a cap on ride-sharing vehicles, Seattle aims to put more city regulated taxi’s on the road.
According to the PSBJ, the new deal will make 200 new taxi licenses available over the next four years. The logic behind such a move, on the surface, appears simple: if more city taxis are operating, the gap between the uberX drivers and Seattle cabbies on the road will shrink.
In Boston, taxi industry drivers and stakeholders have argued Uber isn’t competing on the same regulated playing field, which has allowed the app-based service to tear a 30 to 40 percent chunk out of cabbies’ business.
Though Boston Mayor Marty Walsh wants to see the war between Uber and the city’s taxi industry swiftly resolved, no resolution appears in sight. Right now, all eyes are on Cambridge to set a precedent. And should Cambridge, like Seattle, strike a deal that would allow more cabs to operate in the city, Boston could follow in its wake.
Currently, there are 1825 taxi medallions in Boston. For decades, the city had capped the number medallions at 1,525. In the 1990s, however, the city decided to issue more and sell them at auction. Despite medallion owners’ worries that such a decision would reduce the value of a single medallion, the opposite was true – values boomed.
Now, in 2014, Boston taxi medallions are selling for $700,000, more than ever before, even with Uber and other ride-sharing companies dominating the industry. There appears to be clear incentive for Boston and Cambridge officials to take a page from Seattle’s playbook and allow more city taxis to operate.
The other option: continued, widespread backlash from the public.
Image via PSBJ
