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How Is Uber Affecting The Taxi Companies

Uber may only be a few years old ridesharing innovation, but in many places it has a disastrous effect on the local taxi industry, including in the Long Beach area. And that drawn the critics of many companies. This service is far from being perfect and its deficiencies are always pointed by the traditional taxi companies.  But, in the end it is up to you to decide if you want to use Uber or traditional Long Beach taxi companies

uber-vs-taxi-title-cardOne of the most noteworthy Uber victim is Yellow Cab, the largest taxi company in San Francisco. Yellow Cab filed in for bankruptcy protection.  The startup ridesharing company is attacking on all fronts and it says it offers less expensive and more convenient rides. In the San Francisco area they also try to attract Yellow Cab’s drivers.

“We are in the midst of serious financial setbacks,” Pamela Martinez, the president of the Yellow Cab Cooperative, Inc.,wrote in a letter to shareholders. “Some are due to business challenges beyond our control and others are of our own making.”

And many other taxi companies  had to turn to chapter 11 proceedings due to the rapid ascent of ride-hailing rivals like Uber Technologies Inc. and Lyft Inc.

But San Francisco’s taxi industry is not the only one feeling the threat generated by the Uber services. Services like Uber and Lyft are causing the prices of New York City’s medallions, which are required to operate yellow cabs, to plunge.  The price of a single medallion in 2013 in NYC was at $1.32 million, but as of last August 2015 they were being sold for less than half. New York taxis struggled in 2015, with the total number of trips falling 8.8% from 2014 levels, as Uber and other providers boosted their services and hired hundreds of new drivers. But the pace of decline has slowed during the last few months, suggesting the biggest gains for the new disruptors may be in the past. So it seems that the taxi industry is slowly recovering and adapting. Many companies began offering their own “ehail” apps, allowing riders to call a taxi by smartphone, similar to the way Uber and Lyft users order a ride.

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