Related story: State College Driver Uses Uber to Supplement Income
STATE COLLEGE — For decades, taxi cab companies have been meeting the needs of commuters across the Centre Region. Now, there is a new player in the game.
Uber is an online application that allows consumers with smartphones and other mobile devices to submit a trip request, which the software program then automatically sends to an Uber driver nearest the consumer, alerting the driver to the location of the customers. Uber drivers use their own personal vehicles for this service, and no cash is exchanged in the course of the transaction. The application processes all payment information through the customer’s credit card.
‘Uber has definitely impacted our business, mostly because they aren’t regulated by the state,’ said Jeff Byers, marketing director with Handy Delivery Taxi in State College. The business has been transporting people, as well as furniture and courier items, throughout the community since 1976.
‘It’s causing us to battle to keep up on an unfair playing field. We have so many regulations and things we have to deal with as a taxi cab company that companies like Uber just don’t have to deal with. It truly does make things difficult.’
According to Byers, taxi cab drivers at his company need to be licensed as such. Uber drivers need no such licensing. He also said when using Uber, there is no real way of knowing who is going to pick you up or what kind of condition the vehicle is in when it gets there.
‘To me, the way they operate is a dangerous way to do business,’ said Byers. ‘I think we have a lot more safeguards in place than companies like Uber.’
According to Craig Ewer, who works in the communications department of the New York City Uber office, Uber has a feedback loop that allows customers and drivers to rate each other.
‘As far as vehicle quality goes, all Uber drivers must have a vehicle that is properly inspected in the state of Pennsylvania,’ said Ewer.
Byers also said Uber uses a practice known as ‘surge pricing,’ which allows the company to charge more for transport at high-volume times. Byers said taxi companies can’t make changes in prices at a drop of a hat like their online competitor.
According to Ewer, state and federal governments have been monitoring Uber’s activities, and have addressed many issues raised by taxi companies and local governments.
‘In short, a statewide regulatory system was put into effect in 2014 and those regulations were made permanent by the Public Utility Commission in November,’ said Ewer.
James Selner, a driver and dispatcher at Nittany Taxi, said he believes Uber has taken about one-third of its business.
‘We first started noticing the drop in customers last year, but over the past six months, it has progressively gotten worse,’ said Selner. ‘It’s hard competing with a company like that.’
Selner echoed Byers’ comments concerning the lack of regulations imposed on Uber compared to those placed on companies such as the one he works for.
‘For example, when the PUC wants to inspect our taxis, they set up a day and have us bring all the cars to them for inspection,’ he said. ‘They can tag us for the smallest things, like we have to have matching hub caps and our cars can’t be on the road if they have a dent in them any deeper than four inches. I doubt Uber has to do anything like that.’
Selner said to keep up, the best thing his company can do is to continue to keep all the regular customers happy.
‘We need to do the best we can to keep them,’ said Selner. ‘It’s tough being out on a Friday night or Saturday night and see your regular customers get picked up by an Uber driver. I just hate seeing that.’
Selner said he is not fearful Nittany Taxi will go out of service anytime in the near future because of Uber; however, he said it was not out of the realm of possibility.
‘We just need to see where things go,’ said Selner.
Misti Berardi is a driver at Happy Valley Ride, the community’s smallest taxi service. She, like Byers and Selner, said Uber is causing Happy Valley Ride headaches as well.
‘They’ve definitely eaten into our business,’ Berardi said. ‘We saw the impact this year during football game weekends. And, when the students returned. I think younger people are taking advantage of making a quick buck. It’s hurting us though.’
Berardi said she sees Uber as a light bulb and taxi cabs as a candle.
‘In my opinion, there will always be a need for taxis,’ she said. ‘Uber is like a light bulb. It eventually will blow out. Taxis are like candles. They are here to stay.’
Taxi cab companies, as well as Uber drivers, will see perhaps their busiest day of the year on New Year’s Eve.
‘We’re ready for it,’ said Byers. ‘Handy Delivery has been getting people home safely from New Year’s Eve events for decades, and, we’re going to be out there doing it again this year.
‘We can’t let a company like Uber dictate how we run our business; however, we can use it to make changes and adapt to the changing technological world.’
Byers said Handy Delivery recently has initialized an online application similar to Uber. He said the app allows users to schedule pickup times and see where their cab is located while waiting.
‘Right now, we’re still getting more calls through the telephone, but the online app is starting to pick up a little,’ said Byers. ‘I’m guessing it will only grow from here.’
Currently, when Uber has not turned on its surge pricing, fares are comparable. According to Uber’s website, a trip from State College to Bellefonte will cost the customer between $30 and $40. Byers said a ride from State College to Bellefonte in a Handy Delivery Taxi will cost between $22 and $25.
‘It’s not all about the pricing,’ said Byers. ‘It’s more about the customers and making them feel safe and sound when they climb into one of our cabs. I don’t think many people feel that way when they get into an Uber vehicle.’
Byers, like Selner, does not see Uber overtaking commuter transportation in State College; however, he does admit it is making an impact.
‘What we need to do is work harder to offer a better service,’ said Byers. ‘We’ve added the online application and we continue to preach customer service to our drivers. That one-on-one interaction with our customers is the most important thing we have, and we need to keep a hold of that.’
This year, Uber has teamed up with MADD and PennDOT to help curb drunken driving this holiday season.
‘We’re proud that Uber is making transportation more accessible and affordable in State College,’ said Jennifer Krusius, general manager for Uber Pennsyvlania. ‘This holiday season and through the rest of the year, we hope that Uber helps people avoid the dangers associated with drunk driving by offering a safe ride at the push of a button.’
