The topic of transportation services is a major news item today. Thanks to the proliferation of Zipcars, Ubers, Sidecars, and Car2gos, city dwellers have benefited from a better urban transportation infrastructure. The response to these services has not been all positive. In 2010, one year after Uber’s founding, the San Francisco Metro Transit Authority sent the company cease and desist notices stating Uber was not licensed to operate as a car dispatch service. Uber had established itself at that time as a company that was innovative and capitalizing on demand and supply. Uber claimed to be a platform between driver and passengers, not a service. It did not come under current regulations. Some cities are still deciding how they will respond to the new service. Why is it that there are no regulations today? Peer-to-peer rides are not a new concept. Most of the anti-Uber, Lyft Gett Sidecar and Lyft reactions are not new. Some people use arguments that are over 100 years old.
A Brief History in TransportationTechnologyHenry ford had an amazing idea when he released the Model T in 1908. He wanted to make personal transportation easier and more affordable with a more affordable car. In his ignorance, he did not realize that he would be the pioneer of the shared-transportation economy in 2014. The jitney concept changed everything six years later. Electric streetcars had been the main source of transportation in large cities. Streetcars used to travel up and down busy streets on a set route. However, they became so popular that lines were formed all the way around the block. One man driving a Model T approached the streetcar queue on July 1, 1914 and offered the service of taking people to their desired destination for the price of a nickel. Many drivers did the same thing, offering an easier, faster route for automobiles to use side streets that streetcars were not able to. The peer-to-peer service jitney was born.
Uber, Lyft Sidecar, Gett and other ride-sharing services use many of same principles as jitney drivers of early 20th-century: They identify the holes in their system and utilize modern technology to better connect driver and passenger. The classic supply-and-demand scenario is one that every entrepreneur can relate to. Jitneys spread quickly in 1914 because they were popular among young urban professionals. Does this sound familiar? But as the streetcars’ ridership declined, so did those of the private companies. Their deep pockets and extensive networks were used to argue for a ban on jitneys. The city officials decided to squash the innovative system of transportation because the jitneys did not pay taxes. Anyone who has followed the transportation stories in cities like San Francisco and Washington, D.C. will recognize this story as a familiar one. Licensed taxis are rightfully claiming that Sidecar’s, Lyft’s, and UberX is “not safe” or “bad for cities,” but they do not say that this new technology threatens their 100-year old business model. Let’s make the most of our free enterprise culture. In the end, it is the users who will decide whether this debate on transportation was a success or a failure. Businesses need to adapt in order to survive and thrive in today’s world or even better, the future. We must ensure that our businesses are serving a greater good, that they are legal, safe and reliable. Scare tactics do not help to advance the discussion. RideScout can help cities by letting the best transportation option for each customer win based upon their needs. RideScout lets you see the entire transport ecosystem on your phone. People can make an informed decision when they are aware of all the options available to them.
We should not let government regulate the market to an excessive or insufficient level. Instead, it should set minimum standards for safety, insurance and liability. Then, we can let consumers decide on what they require. We all benefit if the market is allowed to work in a well-regulated industry. Joseph Kopser co-founded and is CEO of RideScout. The technology platform displays all options for transportation in one place. Joseph is an honoree of the White House’s Champion of Change program, a West Point-educated veteran of over 20 years, and a graduate of West Point.
