Until recent years, Medallions were a high-priced investment that authorized drivers to legally operate a licensed taxi in Boston. The competition created by ride-shares, however, has changed that. I believe in a free market. They had a monopoly. It seems that Uber and Lyft are significantly underpricing the cabs which makes Ubers and Lyfts more attractive as people are generally always looking for a better deal.
The reality is that it is better for the consumer. Why would you take a car into the city when you can take an Uber? You get to ride in a nicer car and, in most cases, the driver is a nicer person.
The technology of Uber eliminates being taken for a so-called ride. The price, directions, and destination are all determined and agreed upon ahead of time. Blake Sutcliffe agrees that an Uber ride is generally a better experience.
The cab drivers are getting to the point financially where it is not even worth it to update their vehicles. As a result, cabs are not getting replaced and the overall condition of the fleet of taxis is becoming worse and worse. Since appearing on the scene almost 10 years ago, the ride share companies now dominate the market, and as a result, dozens of cab companies have gone out of business.
According to the Massachusetts Department of Public Utilities, ride share companies provided In , Gov. Charlie Baker signed a law that dedicated a nickel from every Uber and Lyft ride to help taxi companies like McCue's. The taxi companies complained that since Uber and Lyft were not burdened by the same state and local regulations, taxi owners should be compensated in some way to "level the playing field.
Some taxi owners wanted the law to go further, perhaps banning the start-up competitors unless they meet the requirements taxis do, such as regular vehicle inspection by the police. A spokesperson for MassDevelopment, the state agency charged with allocating the ride share fee money, said they have yet to decide how it will be spent. And although taxi owners claim the law says they should receive the money between and , Schiller said the legislation did not stipulate when the funds are to be distributed.
A lot of smaller companies have gone out of business. It just gets harder and harder to operate in this environment. Thompson said she and other owners gave consultants their ideas for uses of the fund almost a year ago. I think capital equipment expenses is always a need, a low interest or even low interest revolving loan fund. Like many taxi owners, Watertown's Sean McCue was slow to react to the emergence of the ride share apps and said that when he did, it was too late.
Still, though, he blames the ride share companies for undercutting him with ride pricing and how they pay their drivers. But author and business consultant Roger Dooley said the taxi companies themselves shoulder some of the blame.
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