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Uber had better understand that in politics, just because you're right, doesn't mean you win. As a Bad Person I take it as a given that there is some kind of c
by chernevik 14y ago
Uber had better understand that in politics, just because you're right, doesn't mean you win.
As a Bad Person I take it as a given that there is some kind of corruption, more likely soft than hard, in metropolitan taxi regulation. That doesn't mean there aren't legitimate interests represented by those regulators, and those legitimate interests will be the rhetorical focus of the incumbent protection campaign. Uber would do well to appreciate those legitimate interests and get well and truly on the right side of those questions. Uber would also do well to understand the unstated agendas, legimate and otherwise, and strategize for meeting those.
Legitimate questions? IANA taxi expert but I would guess:
- Value of incumbent licenses. In NY cab drivers and companies spend hundred of thousands for medallions. There are whole financing structures built around those values. Protection of those values is probably a key objective of the regulators.
That really is a legitimate problem. For one thing those values support an industry that provides jobs to working class people. For another the city probably views those values as a signal of the stability of its policy environment.
- Stability. Policy makers may well believe that the taxi system works on a number of dimensions, that systems like Uber may not work as well on all those dimensions, and that they may disrupt the system with unknown consequences.
- "Universal service". One of those dimensions may be service availability to low income neighborhoods. Cabs are supposed to take fares anywhere. Regulators may fear that poor people may not have iPhones to play in Uber, and that drivers would discriminate against some neighborhoods if the poor people did. It would not surprise me that the tacit model behind the cabs is "you take the high fare business traffic to the airports, but also the lower revenue low income traffic." The high revenue types effectively subsidize the low revenue types. This model happens EVERYWHERE in the regulated universe.
I wouldn't be surprised if the regulators were also simply trying to maintain their nests by maintaining control, and maybe some actual hard corruption.
But these folks are very, very capable at city politics. They've got their 10,000 hours in and they will kick your ass if you don't. I don't care how right Uber is, if they find themselves going up against race and class politics they will get erased.
My advice to Uber? Slow down. Figure out what the other side is about, and I mean all about, good and bad. Figure out how you're going to meet the real problems and the legitimate and / or understandable objections of the incumbents. Figure out the arena where the final decisions will be made (probably the city councils), get to know those players, and figure out how you can win there.
Uber can't probably do this on current staffing. They need first class political advice, and at a local level. Finding the right people won't be easy. But they need people with those 10,000 hours in the right places, and pronto.
- rpm4321 14y ago>> My advice to Uber? Slow down. Figure out what the other side is about, and I mean all about, good and bad. I agree with most of what you said, except for this. They are in the land grab phase. If they don't continue to expand aggressively, someone will eat their lunch, ala Groupon. My advice is for them to take some serious funding, and start cutting checks to lobbyists, PR, and god forbid, politicians. Play the game. I feel horrible saying it, given that it helps feed the machine, but it's their only option to build a truly disruptive business in an area that needs disrupting mainly because of regulation and bureaucracy. Google and Microsoft both learned this lesson too late, and it's hurt them both dearly.
- chernevik 14y agoThat strategy is doomed politically. Sound political strategy is a mix of rhetoric, pr, and institutional advocacy. The last would be especially true in something like this. Even if "corruption" were the whole story here -- and it is not -- it would be beyond simplistic to imagine it could be met by cash payments to the proper pockets. This board routinely laughs at idiot corporations attacking technology problems with mass expenditure. Well, this is a similar sort of problem. There is no "land grab" here. This is not a technology problem. There will some day be network dispatched cabs. For Uber the question is will they survive to be part of that architecture, or will it be built up around their mistakes.
- rpm4321 14y agoI didn't mean to imply that the political process is purely transactional and that they can just throw money at the problem, but from all of the mainstream coverage I've read on Uber - and all of the quotes attributed to various politicians and regulators contained therein - it's clear that they are currently losing the political war. As you yourself stated, they are clearly in the right, but that's no guarantee of victory. Extensive PR and lobbying, while not a cure all, could go a long way towards rectifying that imbalance. Regarding the land grab, I really disagree. They already have a handful of domestic competitors cropping up, and I wasn't even aware of that Hailo company that objclxt mentions above, which sounds pretty formidable. If they sit around doing a bunch of navel gazing on the nature of the political process and civil discourse, they are toast.