How Uber skirts the law

Posted on June 30, 2014 by stopuber in Stopuber // 19 Comments

Uber isn’t a transportation company, according to Uber. It’s a service and information provider that connects riders with third-party “transportation providers.” At the end of the day, it’s just an app; this designation allows Uber to wiggle out of liabilities and consumer-protection laws, as well as many local taxi and limousine laws. Uber’s reluctance to play by the livery rules is the root cause of most of the controversies surrounding Uber.

Uber competes directly with highly-regulated taxi services in major cities, yet it operates mostly outside of the local and federal regulations that apply to cabs. Ergo, a legal backlash has escalated in cities across the U.S. Chicago-based cab companies initiated a lawsuit against Uber, claiming that the ride-share service should comply with the same rules the govern taxi dispatchers. Similar lawsuits have been filed in New York City, Seattle, and Washington, D.C.

Uber Uses Surge Pricing

Uber’s algorithm-based “surge pricing” strategy is centered on demand. The price of a ride fluctuates in accordance with the market. During holidays or popular events, or on foul-weather days, for instance, fare costs will rise because more people are using the service. Case in point: A New York Times writer reported that she was charged $47 on New Year’s Day for a ride that normally would have cost $13.

A lot of people hate this pricing structure, and Uber is taking steps to soothe those disgruntled customers. This year, the company will upgrade its app by adding push notifications that let users know when prices drop back down after a surge.

You Don’t Have to Tip

Uber uses a cashless system. You pay via debit or credit card before your ride; this removes any human-to-human payment transfer from the equation. (Uber takes 20 percent of a driver’s fare, and the rest is his or hers to keep.)

Peer to peer movement or is it a way to beat the system? You decide!

19 Comments on How Uber skirts the law

Terry M. // June 30, 2014 at 9:17 pm // Reply

This is a group of dirt merchants.

They are dishonest about their pricing and their drivers are trained to cheat clients, so that getting from one place to another takes as long as possible, without creating any obvious alarm.

As for customer service, it does not exist.

I would not recommend Uber to anyone.
- Terrence Pacheco // July 19, 2014 at 2:00 am // Reply
  
  I’m sorry you had a bad experience, what you just said is usually what the experiences are from a company taxi ride
  - John Watson // September 22, 2014 at 4:21 pm // Reply
    
    Which should be a huge wake up call for you, you now become worst than a cab.
Never Again! // June 30, 2014 at 11:49 pm // Reply

So my first Uber ride was my last! Do NOT believe the hype on this company!! I thought Uber would be a better and less expensive alternative to taking cabs, and I was wrong! I was in a 5 yo Hyundai that smelled like dead fish.

First off, Uber has NO customer service line similar to “Google” so if you need to contact them like I needed to, it is a VERY DIFFICULT and TIME CONSUMING task! You will have to send them an email and wait days for a response! And the response most likely will be of NO HELP! I am NOT a fan of bad or no customer service! They should put some of the millions they raised into a phone!! Customer service should come first!

Second, Uber CHARGES SURCHARGES or EXTORTION CHARGES as I call them IF you want to use their services during peak hours! How low is that?? These “surcharges” are NOT cheap either! So those who believe the hype that they are saving time and money buy using Uber over cab companies are MISTAKEN! Also I believe my driver was half in the bag! I don’t what would of happened if this clown got into an accident.

Uber will also EXTORT $ for rides to LAX (Los Angeles International Airport) Uber forces you to take BLACK or SUVs ONLY to the airport…..which of course cost more $. regular UberX cars (The least expensive rides) will NOT take you!! are they allowed in the airports anyway?

Buyer Beware!
Kim M // June 30, 2014 at 11:50 pm // Reply

I contacted Uber support 5 days ago but I have not heard anything from them! They overcharged my account!
Pink Mustache // July 1, 2014 at 12:00 am // Reply

I don’t don’t which company is worse Lyft or Uber…bad experiences with both
E // July 1, 2014 at 3:37 pm // Reply

If you don’t like them don’t use them just that simple. Most people myself included use them all the time and don’t have any problems. They are gaining market share because they are good at what they do. They are upfront about surge pricing and let you know exactly what it is wish more companies were like this.
- David // July 1, 2014 at 3:52 pm // Reply
  
  I don’t think it’s a question about their service for me but the legality of it. Accidents, injuries, fees, laws, etc.
TB // July 2, 2014 at 2:24 am // Reply

I am a Uber driver. Some of the comments made are a JOKE! Uber has been successful in EVERY city that they are in because of the situation with the cab/taxi service! Whether or not you personally don’t want to use their/our services there are that many more who do. It is THE safest way to go. There is no money exchanged so you don’t have to worry about getting robbed! Depending what city you live in – a cab/taxi may or may not even show up! Our cars are dependable. It has to be 2005 or newer! We drive no different than you! Probably better in some cases. You endanger people lives by drinking and driving. If you took Uber/Lyft, you would arrive safe and not worried about injuring or killing anyone!!!!! So, if you don’t like it for whatever reason, don’t use them! Plain and Simple!!!! But let the PEOPLE who do rely on our services continue to do so! Are you going to go and help them out????? I don’t think so….. You just sit back and complain without offering a resolution to the problem and without knowing ALL the facts……………… UBER ON!
- Uberxman // July 2, 2014 at 2:45 am // Reply
  
  Wow And I Thought I Drink TOO much of the corporate kool-aid! Help people lol..I’m in it for the cheese and lately not much cheddar to speak of.
uberxdave // July 13, 2014 at 3:38 pm // Reply

Wow what a bunch of fear mongering whiny babies. I have spent 17 years in the trucking industry as a driver and as a dispatcher and now I am an Uberx driver. Regulations are there so states and municipalities can get paid nothing more. You are not “safer” because you are in a cab vs. An uberx car. Uber provides 1 mil secondary insurance when a fare is in the car when no fare is in the car the car owners insurance is in effect…just like everyone else on the road. Most Uberx cars have low mileage and are subject to annual inspections by the state. Taxi cabs have from my point of view 300k to 700k miles on them and subject to the same annual state inspections. Cab companies in my opinion are more apt to fake state inspection because they are getting inspections done by the same shop when an Uberx driver does not have equal access to same. So there could be a good argument cabs are less safe.

Uberx cars are not allowed (in Dallas) to pick up fares at the airports because the cities that own said airports will not allow nonpermitted cars to pick up. Uber Black and SUV are permitted which of course also means higher fares paid.

Also I keep seeing people say that Uber is operating illegally and I just want one person to point out which federal DOT law they should be following that they are not? Prove they are breaking the law or stop stating non facts as facts.

From what I have read on here this blog is nothing but people who will benefit from Uber and companies like them demise. This blog needs to be forth coming and truthful with its intentions instead of playing on the public fear of perception. I read once about how upset horse drawn carriage drivers were about how these “unsafe and wild non licensed” car drivers were taking away all their business. ..get with the times or get left behind my friend.
- just obey the local twxi laws // July 14, 2014 at 1:03 pm // Reply
  
  There’s more then federal laws … what about state and local laws. Why do taxis have to obey and conform to these laws and uber doesn’t. Should the same laws apply to all in the taxi or people transportation company ie ridesharing, peer to peer or whatever this scam is called this week…
  - uberxdave // July 14, 2014 at 2:01 pm // Reply
    
    If you want it equal ok. Let uberx drivers pick up at the airports. Let uberx drivers be able to be hailed like taxis. Let uberx sit at hotels and convention centers where it can be ordered just like a taxi.
    
    The only way an uberx driver can be ordered is by an app. Taxi services has equal chance to have an app too but for some reason in dallas where I live so I can only speak of dallas the cab companies have tried an app and it failed.
    
    Dallas has a history of having a taxi monopoly where even yellow cab admits it holds all 2022 permits dallas allows and they are not even using all of them. But it does not allow for competition here which is why it is such a hot button. A while back a city council member went to prison because of the corrupt sweetheart deal the taxi service had here in dallas.
    
    The sad part is in most cases uberx is not taking away business from the taxi services since most of the people using it dont use taxis on a regular basis in fact it may actually bump some business towards taxi services. I myself have used a cab 2 times in dallas and the second time I was ripped off so I will never use one again but I would use a service like uber so how is uber hurting the taxi industry by giving me a ride? I once took a cab 6 miles to the airport rental car counter and I was charged 32 bucks. The 2 bucks was the toll I was charged to go into the airport problem is the driver took the service road which is non tolled!!! And yes I asked and was told I had to pay for the toll and the airport fee. That same ride with uberx would cost 15 bucks. Overcharging is the reason I dont use cabs but they obviously have not missed my business. A better option has come to town and now that competition is an issue the cab companies are shaking in their boots.
uberxdave // July 13, 2014 at 3:46 pm // Reply

Also just so you know in the trucking industry an owner operator is only under the companies insurance when it is under dispatch otherwise the truck is under bobtail insurance which is a private policy that basically means that truck is his personal transportation and is equal to an auto policy. JUST LIKE UBER!
patrick // September 4, 2014 at 6:47 pm // Reply

This site is obviously paid for by taxi companies. Look at the first few comments too. Fake.
If Iberia sucked it wouldn’t be worth billions. People use it because it’s easier than taxis.
Legality? Here’s a proposition: You want Uber and taxis to play by the same rules? Why not spend your time getting taxis deregulated!
The regulations and laws taxis are required to follow are ridiculous. Most of them are designed to stifle competition so that new companies cannot get liscenced and the established cartels have market dominance. Uber found a way around these onerous laws. Good for them.
Matt Anderson // September 4, 2014 at 11:45 pm // Reply

F**k you taxi drivers and your willingness to support government institutions that rob YOU of money (in the form of licenses) and in turn send the bill to your passengers. The internet is here and you can’t stop it – the last free market on earth. Adapt with technology or get the hell out of the way. Your profession is obsolete. And perhaps you should’ve been more polite while driving people around town.
- John Watson // September 22, 2014 at 4:28 pm // Reply
  
  Oh please, I am a taxi driver in San Diego, private business owner. Yes, I have expenses in my business. So do you.. As of September 1, 2014, the commission for new drivers is now 25%.. My price on a cab 24-hour lease. In percentage terms… 23%. Worth every penny to be legit..
disgruntledtravelers // September 10, 2014 at 6:24 am // Reply

Uber takes more than 20% of the total fare.
They add Fees and taxes to the total fare and then take those first out of the total Fare then take the 20%. The total take from UBER can range from 28% to an eye popping 50% on a minimum Fare.
It is very deceiving!!!
Vinny // September 11, 2014 at 12:31 am // Reply

I will get my car and not use taxi,oober or lift. I will call it HITCH A RIDE. You don’t call a number. All you have to do is stick out your thumb and agree on a suitable donation. Thats great innovation and simpler than
A taxi,oober or lift. With my company there is no wait be
cause as soon as you see me im there. ITS CALLED PPROGRESS. (Why would anyone want to stop progress)