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Old Jun 15, 2017, 10:25 am
  #4  
Perche
 
Join Date: Mar 2011
Location: SFO, VCE
Programs: AA EXP >4 MM, Lifetime Plat
Posts: 2,881
Originally Posted by TominLazybrook
Uber doesn't operate in Florence. So the cab drivers are just proving the point that Uber is vital

People in town are saying that the strike is on Friday...and the taxis are just doing what they always do when there's lots of demand.....refusing to serve the public and going for boutique fares. I passed 8 taxicab ranks in Florence today. I saw a grand total of ZERO cabs available.
Uber has operated in Florence, they just aren't doing it now because of their legal problems.

I'm not so sure how vital they are when they lost $2.8 billion last year and in the eight years they have been in existence they have never come close to making a profit. They've already lost $708 million in the first quarter of this year, not including the $3 billion they lost by getting out of China after losing $1 billion a year there.

People thought Uber might be like Amazon, a company that initially lost money before becoming profitable, but the financial journals say, "Amazon was a piker compared to how unprofitable Uber is." Each year Uber only stays afloat by getting new investment capital, which is why some consider it a Ponzi scheme. According to Bloomberg Reports, "Uber can't stop losing money."

It has been in the news every day this week in multiple articles because it is under criminal, trade-theft, and sexual harassment investigations, and its top 20 leadership from the CEO on down have been fired or forced to step down after an independent investigation by the former Attorney General found it to have such a corrupt corporate culture that it would have to be dismantled by legal action unless they made radical changes.

A few of the many headlines just this week:
"The perils of continuing to use Uber." (NY Times).
"One way to fix Uber: Think twice before using it." (NY Times)
"Uber snarling the streets" (SF Chronicle, because the drivers usually have no idea where they are going)
"Uber served with subpoena demanding release of drivers names and addresses." ( SF Chronicle, so that they have to pay taxes just like taxi drivers)
"SF to Uber: Provide driver info - it's the law." (SF Chronicle)

In Rome after going to school for about a year and passing a test to prove sufficient knowledge of how to efficiently get around the warren of one way streets, taxi drivers pay about $150,000 to 200,000, the price of a small apartment, to get licensed. They pay it off over years like a mortgage. When they retire they sell their license, or pass it on to a child. To drive for Uber in Italy you only had to fill out an online form and rent a car for the week. The car must be inspected, but any other Uber driver could inspect it. You didn't need to speak Italian, English, German, or have any knowledge of the city.

The only background check was a requirement that you send in a photo of yourself, your vehicle, your driver's license, and your insurance card. No investigation was carried out by any governmental agency, you were not fingerprinted, and nobody from the company met the driver before allowing them to start picking up fares. This is a far cry from the professionalism of a Roman taxi or limo driver.

The EU recently ruled against Uber, saying it is a transportation company, and rejected their claim that they are just a website. They must start obeying EU public transportation regulations, which they do not follow now. As this judgment becomes actionable it is bound to have a significant effect, even though Uber is already banned or strictly limited in Denmark, Belgium, France, Germany, Spain, Switzerland, the UK, India, China, Taiwan, and certain cities in the USA. In most cases Uber is only allowed to continue to operate in those countries under unique restrictions tailored to the economies and traditions of that country.

I believe the type of Uber experience most are familiar with in the USA is already illegal in Italy. They called it Uber Pop (Uber X in the USA), which allowed Uber to hire drivers without a commercial license. Now, my understanding is that only Uber Black, their luxury line, is still legal in Italy. That requires a private limo driver licensed by the NCC, or Noleggio Con Conducente, which licenses and strictly oversees limo drivers. Many limo drivers have signed up with Uber Black to increase their customer base, but since Uber takes a 20% cut they charge significantly more than a regular taxi, or what they charge when you hire them in the regular way. In Rome a taxi driver charges a flat fee of 48 euros for a ride to or from FCO. A limo driver will usually charge about 45-46 euros. Uber Black charges 60 euros.

On May 4th, 2017 the FBI began a criminal investigation of Uber for failing to obey USA regulations http://fortune.com/2017/05/04/uber-f...investigation/

One month ago, "Uber faces criminal probe over software used to evade authorities." That was in the USA. http://www.reuters.com/article/us-ub...-idUSKBN1802U1

https://www.nytimes.com/video/techno...-player-region

Until they clean up their act, I prefer professional Roman taxi drivers, or a standard car service.
https://www.nytimes.com/2016/04/14/w...rome-taxi.html
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