Spain is trying to get rid of Uber: drivers will face fines up to €18K
novobrief.com
novobrief.com
Recently Uber started its operation in Poland, in Warsaw. For 2 days that was a news, but later nobody paid much attention on it.
In Poland in order to become taxi driver one needs to fulfill a number of conditions (only people who never comitted a crime are allowed a licence, must be physically and mentally healthy) a then pass the "city knowladge" exam. Exam is obligatory only in cites larger then 100K. And that's all.
Due to competition taxi prices are kept on resonable level, so taxi companies are competing by having nicer cars, being highly available (wating for a taxi longer then 10 min is unusual), offering loyalty cards, cummulative invoicing at the end of the month, etc.
Uber can compete with lower prices - they have promised to be 20% cheaper. It is not clear however cheaper from which price - premium taxi companies (about 60 cents per kilometer) or cheap services (40 cents per kilometer).
There are other questions as well - would Uber be able to provide invoices, if not, it is not a deal for many people.
Even if I pay less (10% less?), I don't think I will risk riding with someone who might be totally unfit for the job and does not know city. Plus if something goes wrong I am not sure how Uber is going to handle that.
So, basically, Uber is one more taxi company out of 25 with fancy way of calling taxi, so there is no reason for other companies to protest.
I actually switched to iCar mostly for b) - I trust GPS more than taxi driver's instinct.
I don't see anything new Uber can bring here. We already have a taxi network with an ordering app anyway.
They are a taxi company so should have to follow the same regulations as all the other taxi companies.
The reason that they do so is that the licensing rules for taxis protect the incumbents from new entrants.
So for all the other markets, where there is no medallion system or other barrier for entry to the market (other than "expected" things like insurance etc.), that is where Uber is just a taxi. And here they don't even SAY they aren't taxis.
My guess: taxi license/medallions are a relic that is bound to disappear pretty quickly. Since in some places people have to BUY these things, it's obviously not going to be done overnight.
I agree, however until they lawfully become a thing of the past is not fair to people who have bought them (or followed the possibly lengthy procedure of getting licensed)
When you peel away the vague and emotive language of 'heavy regulation' to look at the actual issues then suddenly things look quite different.
Hands up who on HN thinks filling our roads with uninsured drivers is a good thing? Hands up who thinks mandatory checks on vehicles brakes and other basic safety systems is a bad thing? I think I see pg's hand at the back there. But in general the vast vast majority of people think mandatory insurance is a good idea. That's why nearly all developed countries require it by law.
Uber don't want to actually come out and say 'our drivers are not insured', but make no mistake, thats the kind of thing Uber and SV VCs are talking about when they complain about 'red tape' and 'regulation' and 'lack of entrepreneurial spirit'. Ignoring insurance laws makes it easier for them to undercut law abiding and sociably responsible competitors, and they want to continue to get away with it.
The thing is that instead of making these things "expected" because of market forces, imposing it by law makes it a default for everyone and it becomes a box to tick when you want to operate a taxi, just like many other things. And you end up with people who simply do not give a shit at all about consumer experience and providing a good service at all. That's the key difference with countries were taxis have less regulations: people actually compete on service, for the benefit of everyone, not just the few who are taxi drivers and running a monopoly provided by the State.
With this attitude you end up with Taxi drivers who do this job because they see it as a rent, not as a way to make a difference on the market. Yeah, that's the spirit!
The issues people are going to review on will be driver experience, internal cleanliness, etc. Poor vehicle safety only really becomes a passenger issue at the point it's too late.
Lack of insurance is even worse - because it also affects the person your taxi crashes into, who doesn't have any say in the matter at all, market-wise.
There can always be over- and under-regulation in any market, the places where Uber was born from the "over regulation" probably has quite a lot more regulation, most notably it is probably where you have a system of regulating the NUMBER Of taxis (e.g. "Taxi medallions"). The "regulation" that many oppose to is probably the regulation that actually prevents people from easily getting into the taxi business to meet demand. Regulations regarding safety/insurance etc. I can't imagine either drivers or customers see as a problem. If someone finds getting proper insurance too bureaucratic that is probably a good filter for drivers you don't want on the market.
That doesn't make any sense. Sure, high mileage cars probably need to be checked more regularly, but that goes for non-commercial vehicles as well. The fact that money changes hands after a ride does not do anything to the technical state of the car.
Same thing for the insurance: if I drive a friend to the airport, that's OK apparently. But if I drive someone else to the airport for money, suddenly I'm not insured anymore?
To me this just sounds like people making up rules to protect their own interests.
- You always get a different price
- You never get a receipt (if you request one, you often get yelled at)
- Drivers drive like madmen
- Sometimes it takes 30+ minutes for a taxi, other times no taxi picks up the damn phone
- Sometimes they tell you 20 minutes, and then don't come at all.
Fuckers will talk all the ride about how hard it is for them to make a living, how the laws are hard to follow for them etc. And then give you a price of 50zl for a 10 minute ride. Ridiculous. I can't wait for services Uber and alike to take them all out of business.
Apparently they don't have this problem in Poland, and rather unsurprisingly, taxis are cheap and competing by having nicer cars etc.
A normal taxi will not go where I want, or refuse to take me for any other reason. And payment has to be cash only. And there's always some risk the driver will try to take advantage of you.
Easy. Undercover inspectors just book an Uber ride. Soon as they step into the vehicle, they present ID and fine the driver.
Also, denying service can be an offense as well. (depending on the reasons)
If 1% of Uber drivers are fined leads to 50% of drivers being scared away that could be enough to stop Uber completely.
Maybe even two houses depending on the area.
Historically, people needed to take big credits to start a taxi career.
I'm not sure what is my position, but I've empathy for those who did pay such license and special insurances.
Also I've empathy for those who want to make use of Uber services.
It's not easy to make justice to all of them at the same time.
I think there are more European countries with the same conflicts regarding this situation with traditional taxis and Uber. Many disputes, demonstrations and strikes, all around Europe.
Here in Spanishtan the government has take a position. We can not presume of a 2.0 government, neither about pro technological laws, or pro entrepreneur laws. Indeed. Is not new for me.
Traditionally, getting a driver license in Spain has always been like signing for a relatively well paid and secure job for life. And moreover, there is no need for any investment learning any particularly difficult skill. This is all supported by ridiculously high fares backed by regulations.
This is not to put the blame on taxi drivers, I truly believe they are choosing a honest option to make a living. But considering that an important factor, if not the most important, for the Spanish economical crisis is the inability to adapt to a global economy, with this kind of actions, the message the government is sending is: "don't invest your time learning to code, or getting engineering degrees because we are still trying everything in our hand to keep traditional professions secure and well paid, not like those new risky technological jobs". The average Spanish programmer is in a more precarious situation than anyone with a highly regulated unskilled profession.
Here in Spain, I'm constantly seeing measures to try to maintain the old ways of living at any cost with total disregard about how the rest of the world is evolving. I'm not claiming globalization is good or bad but it's happening, and if the Spanish government keeps trying to hide it from its population with more debt, in the long term, it only means less economical competitiveness for the country and slimmer chances to catch up with the rest of the world in the future.
Defending these minority groups only means more poverty overall for everyone in Spain.
Well, it depends on your culture and perspective, of course. To me, the answer is almost always clear and obvious: when there's a conflict between the worker's happiness and the consumer's happiness, the worker comes first. Society's role is to ensure its members can make a respectable livelihood -- not to solve every minor inconvenience for those whose comfortable survival is already guaranteed, or to make their life more "efficient". Of course, if the rich want to run their lives like well-oiled machines, it's their prerogative, as long as they don't interfere with society's more important goals.
(That's what "the worker comes first" despite the consumer not wanting the product would mean, I think. If not, then the question is where you draw the line and how you measure the harm done to the average worker when he is forced to support other workers who are unproductive compared to available alternatives. For instance, rich people have private cars and sometimes private drivers and don't need taxis that much. Who needs a taxi? Someone without a car who needs to quickly get from A to B. Could be a rather poor chap. Of course, taxis, that regulated brand of public transportation, are hardly affordable on a regular basis to "poor" people. Whether this helps or hurts "workers" is not obvious to me. All of which is not to say that I'm "on Uber's side" or some such, I'm too uninformed to take a side on this one. Just wondering about your "pro-worker" statement.)
[1]: Although I mean politics in its very common denotation (i.e. the work of politicians, and not "politics of oppression"), it does provide a very good mechanism for groups to bargain over interests. It doesn't always come up with the same answer your common sense would give you, but it's sometimes better (though more annoying): it allows groups to consider various proposals as a package, rather than fight it out over each one in isolation (e.g. we won't oppose increase in gas tax if you don't allow unregulated taxi services).
1. Country A - taxi license costs $300,000. Average ride costs $30, driver keeps $10 after paying off the license mortgage.
2. Country B - taxi license costs $100. Average ride costs $15, driver keeps $15 since he doesn't have to pay it off.
Moreover - the 'community' isn't really choosing anything. Instead it's some crony local politicians in the pocket of taxi lobby. If you want to do a referendum on whether Uber should be operating - I'll agree on the 'community' stance. Otherwise it's the minority who have the most to lose advocating against it.
The problem with defining 'worker happiness' some way is that if unhappiness entitles you to something unhappiness can be achieved. What about the happiness of those who would like to be a worker, but can't because it conflicts with existing worker happiness?
Workers are ann entrenched interest group (or even class, to borrow more Marxist language) and they are interested in maintaining the way things are. The loudest are reactionary, preferring to go back to the way things were.
The unionized factories of 2 generations ago were not the pinnacle of human civilization.
On the other hand, there's almost 5 million people in Spain "looking for something else". Many of whom have already exhausted their unemployment benefits.
Do you think it's possible that the "insiders" might try and influence the state to get them to tell that to newcomers in order to gain a bigger share of the pie for themselves?
I'm not sure why you put government in quotations, but the government doesn't know; it's supposed to decide through bargaining.
> Do you think it's possible that the "insiders" might try and influence the state to get them to tell that to newcomers in order to gain a bigger share of the pie for themselves?
Sure, but that's the name of the game. I would hope that politicians who want to get reelected support sensible policy (or at least a sensible "grand bargain"). The way the game is played sucks, but it's a lot better than living at the mercy of those who have more means (not that it isn't like that anyway, but at least democracies give people the power to organize and form an opposing power to capital).
http://en.wikipedia.org/wiki/Economic_calculation_problem
And as a consequence I think that markets are a more efficient way of calculating some things like "how many people should be taxi drivers" than government planning.
Democracy does not equal the will or the good of the people in some hermetically perfect way. The reality is that in both economics and democracy entrenched culture, institutions and interest groups gain power. They guard it and enlarge it. They quickly develop the belief that they are entitled to it.
The 'good of society' even if it could be understood objectively is not represented in the volumes of trade policy enacted into legislation after months of committees, "consultations" and such.
Political power is the oldest currency. You call innovation a euphemism used to justify things. I call these authorities euphemism.
Incidentally, I lean very left on a lot of things. I am a European. I am pro-EU and I think that the true goals of the EU, solidarity, peace and open borders are a genuinely worthy goal. What I reject is this rule-by-beaurocracy mindset enabling and encouraging letters of objection to your neighbor's lawn furniture.
In any case, it's very easy to launch accusations from your 1,000m high, drone's eye view that these people should just shave a percentage off their margin. It's not about shaving a few percentages point. It's about shaving themselves out of existence in order to allow old, decrepit and corrupt institutions another few years at the trough.
If we don't like our civilization, we're free to rebel. It would be sad, though -- at least in my opinion -- if the cause for rebellion would be a "ride-sharing" app that's become so synonymous with spoiled consumerism.
A better alternative is something like a basic income. Something that helps all people, not just people who have jobs with high demand. And is payed for by taxing the entire economy, not just businesses that coincidentally employ a lot of workers (or indirectly, their consumers.)
If the government sides with Uber it loses the money he get from the (outrageously expensive, like you said) licenses, and has a lot of unhappy voters (taxi drivers).
What would it gain ? Better service ? Lower prices, more fares ? Happier citizen ? That is really all to be demonstrated.
It´s a very rational decision in my opinion, on part of the government, although I might not agree with it.
On the human side, I agree that taxi drivers deserve sympathy, but no more than other owners of traditional businesses that are made obsolete by progress (small CD shop owners, bookstores, photo development shops)...
On the other hand, taxis here in Spain are nowhere near the chaos they seem to be in Manhattan or SF. They are usually rather clean (not necessarily shiny but decently clean) and drivers tend to be agreeable (there are exceptions, as in everything).
An anecdote but I doubt it's the only time that happened.
As a matter of fact, I've taken 2 taxis in the UK and was scammed in one of the trips (first one actually), the second one was nice. Shit happens, everywhere.
Works great! You just sit back and relax while the driver figures out how to get to the destination. Totally avoids the usual stress when a taxi driver takes a wrong turn.
There are certain industries in Spain which have legal barriers of entrance, so that it is very difficult for newcomers to get in, such as pharmacies and taxis. Think of it like a mafia.
That said, it has been proved on a TV programme, that a spanish-looking person taking a taxi, the taxi took a short route, and a foreign looking person taking a taxi from the same place to exactly the same destination, the taxi took a much longer and expensive route.
That said, it is my opinion that taxi driver and truck driver as a career has its days counted, in the light of innovations such as self driving cars. Obviously there will be a fierce (and presumably violent) opposition to the introduction of such disruptive technologies, they will lobby as a group (or as a mafia) trying to avoid that overtaking the market, but in the end those technologies will win.
So in the end, it is irrelevant if Uber can or can´t operate now in countries like Spain, because taxi drivers have no future.
The only hope for smart taxi drivers will be to buy a self-driving car and operate it 24hours a day (that is, embrace innovation as opposed to resist it, resistance is futile), while working themselves on something else, or just enjoying life.
I can’t imagine a change in public opinion in favor: the country that has massive official unemployment, systemic black market: the “sharing economy” cannot be more popular than now. One PR strategy would be to denounce the undeclared equivalents, drivers who offer rides without any licence or control; have the obvious accident happen (unceremonious driver, riders running away) and blow it out with a PR campaign; Uber could then present as the savior, and an needed control over the unscrupulous drivers and riders.
The public transportation is pretty good, one can get anywhere in Madrid by using metro. http://www.expatica.com/es/essentials_moving_to/essentials/P...
I agree that Uber needs to have the same fiscal treatment as taxis do, but making the service illegal is beyond ridiculous, and a very sad way to try to stifle innovation (which will end up finding its way anyway).
Not to mention they wanted to charge me over 100 euros for going from the Airport to the main train station.
From my experience the taxi industry of Spain is highly inefficient and overpriced.
What are your citations for those bold claims? The first one is subjective, and the second one seems objectively false: http://blog.uber.com/ridesharinginsurance
This link seems to say that neither of those fears is true for Brussels: http://blog.uber.com/uberpopfactsbxl ... I can't find a similar post for Spain, but then, I'm not the one who bears the burden of proof.
In most US cities, if you don't pick up strangers holding up their hand on the sidewalk, you're not considered a taxi, and the rule does not apply.
I wonder if private drivers are allowed to drive someone else'e car to provide such services?
I've used MyTaxi or Hailo many times in the past few months here in Madrid and have had 0 issues with taxi drivers. I'm not saying there are no taxi drivers like the ones you described above, but I think it's a minority.
I've booked a single taxi journey in Spain, and it was one of the most frightening experiences in my life. The guy was chasing pedestrians and would have run over several of them had they not jumped. He got us to where we were going quickly though.
Anything annoying they stop it as soon as requested. My experience is I have to expressly allow them to turn radio on.
What I don't like: about at least a 15% of rides, the driver tries to take the (very) long way. A couple of times I've demanded them to 'stop me right here'. That's sad for the majority of good drivers out there, but still a problem and forces me to be extra careful, while I'd rather relax and enjoy the landscape.
I used Uber a couple times, the second one this friday, and I friend and I asked the driver what will he do about the fines that will start happening this monday. He just said that he will probably stop driving.
I love these new kind of services and this is not the way to boost innovation.
Our politicians are fucking morons.
There are plenty of taxis and free services for you to book one, I have never waited more than 10 minutes to get one, and most drivers are respectful and will turn the radio off or leave you alone if you say so. You can even ask them to take a particular route and they won't have any problem in doing so