Uber in Seattle

I don't take taxis very often. In fact I suspect that I have not been in a taxi more than twenty times in the past twenty years. I may therefore, be the least qualified person to pass comment on the western world's love affair with self employed drivers contacted through the ride-hailing service Uber. However, this "new" way of getting a taxi raises some questions that need to be asked.

Uber at its simplest is a way of an individual who needs a ride to get one from someone who wants to drive someone. A cell phone app (application) is turned on, information is inputted and a car appears. There is an agreed amount for the drive as well as a small fee to the company that manages the technology. It is quick, requires limited human contact and no government interaction. What could be simpler? Under Uber - the taxi driver is not required either to buy a  taxi licence from the municipality or to work from a company that has. While Uber may perform some sort of screening process, no training is required. The driver chooses the hours he/she works, they drive their own car and unlike taxi drivers who have some rules to follow, they can pick up passengers where ever they please. For all intent and purposes it is simply one person driving another person - something that millions of us do every day. The only difference is that in the case of Uber - that private individual is getting paid - and getting paid for more than just for gas. When a private individual drives for Uber, the endless red tape of municipal taxi regulations, the cost and the sometimes long waits for a licence, the long hours and the sometimes fierce competition and jockeying for position are no longer are issues. The driver can be his or her own boss, can work the hours they want to and get to pocket the majority of the money earned.  In turn the passenger gets quick service. Perhaps best of all, the passenger gets to rate the driver (driver with bad ratings don't get used).

However, it may not that be simple.  While the system of municipalities licensing and controlling the number of taxis may be at best archaic (the cost alone ensures a system of "indentureness" that forces drivers to work extraordinarily  long hours) it does provide some measure of protection for the consumer. Taxis are required to be well maintained, the drivers' names are displayed within the cab, they are required to have insurance, police checks and to have attended at least some sort of training. The insurance issue alone is worthy of more discussion. Who, for example, pays the cost for an accident when an uninsured Uber ride  causes that accident? You know the insurance company are going to say the driver was in breach of their policy and are therefore not covered.  Equally as important licensed taxi drivers pay taxes on their income.

No one likes paying taxes. Most of us are, I assume, quite happy to pay a contractor "under the table" to avoid taxes. Workers are frequently happy to receive their payment this way because they avoid having to declare the income. The rise of Uber and of the various accommodation sites such as Airbnb on the internet are at least in part a result of people wanting to not pay taxes on their income. While people celebrate their new found freedom from the taxman, they also need to recognize that the underground economy hurts us all. The Toronto Star reported that

                " A Statistics Canada report released Wednesday valued “underground” transactions made

                  in 2012 to evade taxes and legal obligations at $42.4 billion — up from $40.9 billion the 

                   previous year. Of the national figure, $15.3 billion is attributable to Ontario."

That means that if everyone always paid their taxes that (1) Canada would have a more than balanced budget and (2) that post-secondary education would be free to all Canadians and we would have a national day care plan and maybe even a guaranteed income for everyone. So the next time you take an Uber Taxi or use Airbnb - asked the person if they declare their income. If the answer is no - they are taking money out of your pockets twice. Think about it.

On a side note - CBC reported that in Seattle, Uber drivers are attempting to unionize. Seems to me that the drivers want the best of both worlds: complete freedom to do what they want to do while having protection from a big companies. All without having to pay for it.