When it comes to inventing a brand new tax on businesses and residents (see street fee) or currying favor with a new employer in town (see Airbnb), the city of Portland presses the pedal to the metal. But when it comes to bringing the entrenched taxi industry out of the dark ages and into the modern world of competition and technology? Portland can’t even get into gear. That’s the challenge facing Portland as Uber, the San Francisco-based ride-sharing company, stands at the city’s doorstep. Uber has aggressively moved into 200 plus cities around the world - including last week’s expansion into the suburbs surrounding Portland…. But Portland so far isn’t rolling out the welcome mat for Uber, despite clear customer demand and the reality that Uber and other competitors are inevitably joining the fray.
I love Portland. My hometown can be as progressive, green, and forward-thinking as any city in the country…and more than most. Bicycles rule here, public transportation is pretty solid and reliable, and things generally work pretty well. Like any place, Portland has its blind spots, areas that don’t work as we might prefer them to. Sometimes it’s poor planning, sometimes lack of vision and foresight…and sometimes it’s just plain, old-fashioned self-interest. So it is with the controversy over whether to allow Uber to set up shop in Puddletown. Ultimately, it seems the argument is about competition. The city’s antique taxi-licensing system no longer meets the needs of Portland residents, and sclerotic, inefficient taxi cab companies are terrified of being forced to compete with Uber on a level playing field. This means that taxi companies are furiously exerting every ounce of political pressure they can in order to maintain the status quo; it’s what happen when someone finds themselves facing an adversary they’re completely unprepared to compete with.
Because of Portland’s antiquated taxi regulation system, the six taxi companies in town haven’t had to innovate. Why should they, when there’s no competition? They’ve had no incentive to innovate, introduce new products, or change much of anything. They do business in much the same way they’ve done it for the past 20-30 years. Along comes Uber with a modern, customer-centric business model…and taxi companies are terrified. Allowing Uber into Portland would force them to compete for customers in a way they’ve never had to before. I suspect they recognize that they’re just not up to the challenge, so they’re digging in their heels and calling in every political favor they can.
Here’s the problem with that strategy: It’s not going to hold up over the long term. Progress is not easily denied or held back for long. Eventually, consumers will figure out what’s going on. They’ll demand to be allowed access to newer, more efficient, and cost-effective services…because that’s the way the market works. It’s the way of the world- adapt or die. Uber should be allowed to compete with taxi companies…because ultimately it will benefit the people of Portland. New products, new services, new ways of paying- Portland residents should have access to these things in the same way residents of other cities…and Portland’s suburbs. The city isn’t keeping Uber out because they’re concerned for passenger safety or driver livelihoods. Uber’s safety record is no better or worse than conventional taxi companies, and drivers are currently squeezed to the nth degree by the taxi companies. One survey showed that Portland taxi drivers on average earned $6.22/hour after companies deducted fees and services they charge drivers. You can’t claim to be concerned about the livelihood of your drivers when you’re squeezing them dry.
This controversy is purely and simply about one thing: self-interest…or, let’s call it what it really is: self-preservation. Portland’s taxi companies have only to look at the rearguard action being waged by newspapers against competition from the Internet. Our local fishwrap, the Oregonian, still publishes every day but home delivery only occurs four days per week. It’s a matter of time before print news disappears altogether. It’s what happens when innovation rears its ugly head- greater efficiency, lower cost, greater economies of scale, greater speed of delivery. Current technologies are forced to adapt…or go the way of the horse and buggy. It’s just the way the world works…and it’s exactly what taxi companies are afraid of.
Whether or not the City of Portland or the local taxi companies believe, Uber (or another company offering better, faster, cheaper taxi service) will eventually make its way into the Rose City. You may be able to delay progress, but it can’t be prevented or denied. The sooner Portland’s taxi companies stop elevating self-interest and self-preservation over the interests of Portlan residents, the better off the city and its residents will be.
Adapt or die. Your choice.
