Uber Boston Case Memo

UBER COMES TO BOSTON

PROBLEM STATEMENT

The state of Massachusetts has been facing rapid changes in its taxi laws. The newly elected governor Baker has signed the law authorizing Transport Networking Companies like Uber and Lyft to operate in Massachusetts which has terribly affected the established taxi-drivers in Boston.

Strength & Weakness Analysis

Strengths

• Legalizing Uber in Boston will benefit consumers in creating more convenience and control over usage of taxi.
• Uber is a world renowned company known for its record breaking innovations in transportation industry.
• Legalizing ride sharing companies will reduce the number of cars thus reducing pollution and traffic congestion.
• Industry disruption caused by ride sharing companies has led to creation of stringent safety and background checks.
• Legalization of ride sharing companies will create new forms of employment.
• Due to the existing monopoly drivers were taken advantage by the owners. With the introduction of competition we can expect drivers to gain some control and power.
• With more competition the areas that were unfairly discriminated in terms of response time will see improvement.
• Legalization of Uber and other similar companies brings in new economic income for the state and city.
• With the use of technology monitoring and complain redressal will be made more efficient.

Weakness

• Induction of ride sharing services like Uber has severely affected the livelihood of traditional taxi drivers and owners due to loss of monopoly.
• Introduction of state level control on taxies has denied cities power to regulate their own taxi laws.
• Lack of focus on compensation for the taxi drivers seems unfair. Thousands of families could go into debt due to lack of support from government.

RECOMMENDATION(S)

I would recommend the following suggestions

• Technology has always been an unstoppable force. It has driven our species to progress since the industrial age. Introduction of TNC will benefit a huge number of consumers and the economy. It has also affected a smaller section of traditional taxi drivers. Banning uber just for the sake of small section of society goes against the logic. Traditional taxi drivers have no choice but to adapt and survive. However government can step in to take some measures in-order to ease their transition. More funds can be allocated to help taxi drivers. Instead of just allocating 5 cents(per ride) government can allocate more money to help the taxi owners and drivers.
• Since Uber will benefit the most at the cost of traditional taxi drivers and owners, government can enforce Uber to bring special programs to partner with taxi drivers to ease their transition(At least for initial certain period of time.)