HomeMy WebLinkAboutClinton News Record, 2015-07-22, Page 44 News Record • Wednesday, July 22, 2015
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editorial
Reuters file illustration
Wheels are falling off traditional taxi model
Before it became short-
hand
horthand for all things awe-
some, uber had a more sinister
connotation to many. A German
word, it means over, above or
across. Canadians of a certain
vintage know it from the first
stanza of the Nazi -era German
national anthem, "Deutschland,
Deutschland uber alles," or Ger-
many over all.
Uber the ride -sharing app is
not a villain, but its take -no -pris-
oners approach has redefined
both the meaning of the word
uber and the modem cab indus-
trywhose fundamentals the
company is rewriting in cities
around the globe.
Simply put, U.S.-based Uber
argues it's a technology com-
pany, not a traditional taxi com-
pany. Punch a computer app on
your cellphone, and you hail an
Uber driver. Anyone with a clean
driving record, who clears crimi-
nal screens and has a vehicle, can
become a driver. Drivers aren't
employees, but partners in a ride -
sharing system that dangles the
allure of faster, often cheaper,
service.
In countless cities around the
world, Uber has been met by
protests from the traditional taxi
industry, defiant regulators and
politicians insistent Ober be held
to outdated regulations.
In Canada, Uber is in almost
every major market and has been
taken to court in at least two in
failed bids to halt its operations,
most recently in Toronto.
The backlash is understanda-
ble: Cities tightly regulate the
cab industry, down to the num-
ber of taxis allowed and what
they can charge. Owners who
buy their plates on the street, at
prices that rival many houses in
this country, are naturally cha-
grined when an upstart can
undermine that business
model.
But U.S.-based Uber, now
only six years old, isn't the
problem; it's the inability of reg-
ulators to anticipate and keep
up with changes brought by the
sharing economy.
Just like countless other
industries -- music, television,
travel and publishing, among
them -- the old-fashioned car-
riage industry is being left
behind in the Internet's digital
dust. That doesn't mean the taxi
is dead; it simply means that
the answer is to broaden regu-
lation to include a new ride -
sharing category and levy the
appropriate licensing fees.
In the innovation economy,
putting the horse before the
cart isn't the issue; it's under-
standing ahead of time that the
wheels are falling off the cart.
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