Uber: An antidote to taxi corruption

Taxi service in the Boston metro area is pretty bad. Cabs are still booked by phone. The dispatcher lacks caller ID so the street address and name have to be dictated. Cabs often show up late or to the wrong street. In speaking with cabbies over the years I’ve learned that one of the problems is that dispatchers play favorites, in particular by awarding jobs to those drivers who pay them bribes. One of the results of that is poor service for customers who are not always sent the most convenient cabs. I’m not the expert on corruption in the cab business but you can read more about it in the Boston Globe if you don’t believe me.

So I’m grateful for the Uber service, which provides a more convenient, less expensive service that in my experience has also been more reliable and friendlier than the taxi alternative. (If you don’t know, Uber is a smartphone app that allows passengers to request private cars, cabs, SUVs or black cars and to pay automatically.) Interestingly –and not surprisingly to me– I am encountering UberX drivers who are former taxi drivers for the taxi companies in my town. When I ask them what they like about Uber they mention the ability to determine their own hours –but when I push them a little more they open up about the lack of corruption as another reason to participate.

Now, not every one is so sanguine about Uber. (See Why Does Uber Suck Now?) for a different take by one of my neighbors. I agree that Uber staff have been a bit sleazy, at least in New York, and I’m sure that experience with drivers will be variable. But I don’t object at all to surge pricing. As long as it’s disclosed it should bring more cars on the road when there’s demand for them. (You can always take a cab if you don’t like it.)

At least for now, Uber is giving out its venture capitalists’ money to build up the business. If you use my invite code: psx4h to join Uber you’ll get a $20 credit and so will I.

If you’ve read all the way to this point and are wondering about the connection to health care, I’m sorry to say there isn’t one.


By David E. Williams of the Health Business Group

February 3, 2014

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