write a brief discussion? uber has issued an ultimatum to Houston to reform its
ID: 461314 • Letter: W
Question
write a brief discussion?
uber has issued an ultimatum to Houston to reform its rules for allowing drivers to partner with the company or it will leave town.
“We have worked hard and taken extraordinary steps to help guide drivers through the current process in Houston,” Uber’s Houston manager Sarfraz Maredia told City Council in a letter delivered Wednesday afternoon. “However, a year and a half later, it is clear the regulations are simply not working for the people of this city.” Houston officials said he would have failed their background check because of a prior federal drug conviction, which Uber’s background check did not catch.
Still, Houston is an outlier in requiring fingerprinting. Only New York City – a huge taxi market where Uber drivers must have the same license as a cab driver – also requires a fingerprint background check.
Since the rules went into effect, Uber officials said 20,000 people have signed up to be drivers in Houston and then not completed the city’s licensing process. As a result, according to a report presented with Maredia’s letter to city officials, fewer part-time drivers in Houston partner with Uber.
“Houstonians who could most benefit from such flexible economic opportunities are often the ones who are least able to access them,” Maredia wrote.
Hancock said applicants either gave up during the licensing process, or didn’t even start it once they reviewed the regulations.
“More people have not completed the process than have,” Hancock said.
The number of drivers remain a closely-guarded company secret, and the city is prohibited from saying how many license have been issued.
Meanwhile use of Uber in Houston surges, something both sides have said bolsters their case. The city argues use means Uber is profitable even with the regulations, though the company says they stifle supply of drivers.
“Demand continues to grow approximately twice as fast as our ability to onboard qualified drivers,” Maredia told city officials. “Riders ultimately end up paying the price when there are not enough drivers on the road, particularly when demand spikes during major events. For example, over the Final Four weekend in Houston, one in three trips involved surge pricing. This is unsustainable.”
The company has suggested leaving Houston before, especially as it wages a contentious battle opposing similar regulations in Austin. Voters there will decide on May 7 whether to tighten regulations of Uber and similar ride hailing companies.
Explanation / Answer
Uber and the city council of Houston are at loggerheads with each other over background check regulations. The dispute has come to a situation that Uber has issued an ultimatum to Houston to reform its rules for allowing drivers to partner with the company or it will leave town.
Houston, like New York City, requires fingerprint background check. Uber’s contention is that because of the rules, city of Houston is suffering in two ways, as drivers are not able to avail of the flexible economic opportunity provided by Uber. Secondly, the demand for taxi services in the city is growing at a rapid pace, which the company is not able to fulfill, as drivers are not able to complete the city’s licensing process because of elaborate background check. This lead to shortage of Uber cabs on the road, and subsequently consumers suffer, when they have to deal with the shortage as well as pay surge pricing during peak hours and during special events. .
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.