This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

5 U.S. Cities Where Uber Is Unwelcome but Wants Your Taxi Business

NEW YORK (TheStreet) - If you haven't tried Uber yet, it's clear that the mobile app ride-sharing service is looking to come to a city near you, if it hasn't already - and in the process making traditional taxi service irrelevant.

Instead of hailing a cab, registered users simply use Uber's mobile app - via their Apple (AAPL) iPhones, Android devices or Windows phones - to request a pickup location. Since registered users already have their credit card information saved in Uber's app, there's no need for cash and receipts are emailed. Uber has several options: a low-cost ride-sharing option,uberX, luxury sedans and seating for groups under UberBLACK and UberSUV as well as uberTAXI, which connects users to a taxi at metered rates.

Founded just five years ago, the San Francisco-based company is already in 205 cities in 45 countries, with the company expanding into 24 markets just last week. The company says it has millions of users, but would not provide an exact number to TheStreet. However, Uber is up against strong resistance from taxi drivers in various cities across the world who have been in an uproar at the disruptive company, mainly for not being beholden to stringent regulations that other taxi drivers are required to follow. A number of cities, from Seattle to London have held protests against the company.

Read More: eBay Is Smartly Treating StubHub Like Uber

On Tuesday, following a lawsuit that was filed by Taxi Deutschland, a German court in Frankfurt temporarily banned two of Uber's three services in the country -- Uber and UberPOP, its ridesharing option in Europe. Unlike UberBlack, the first two services do not require the use of registered drivers, according to Fortune.

"Uber will carefully review the content of the preliminary decision of the Frankfurt Regional Court, and will appeal this decision and vigorously defend the claim that has been filed by Taxi Deutschland," Uber responded in a blog post on Tuesday. In the meantime, "Uber will continue its operations - and will continue to offer its services via its app - throughout Germany."

Last week Illinois Governor Pat Quinn vetoed legislation, House Bill 4075, dubbed the "Uber bill" and a related measure under House Bill 5331 that would have imposed statewide regulations on commercial ridesharing and preventing local governments from adopting rules to fit their communities. "I am vetoing this legislation because it would have mandated a one-size-fits-all approach to a service that is best regulated at the local level," Gov. Quinn said in an Aug. 25 statement.

Uber, which raised $1.2 billion in June at a pre-money valuation of $17 billion, is also experimenting with other delivery services like messenger services through UberRUSH in New York City, a ridesharing option, UberPool, that's in beta testing in San Francisco; the Uber Corner Store launched in Washington D.C. last month, and, from Aug. 26 through Sept. 5, it is experimenting with UberFresh delivery service in Santa Monica, Calif. Investors in Uber include Goldman Sachs (GS) and Google (GOOGL) , through Google Ventures.

The company sees itself as a technology company not a transportation company. "We assess a number of factors before entering a market, including existing regulations and user demand. If the laws haven't conceived of Uber's model, we'll reach out to policymakers about the significant demand in their city and educate them on this new paradigm," Uber spokeswoman Natalia Montalvo wrote in an email to TheStreet on Tuesday.

Here's five U.S. cities making it harder for Uber to do business.

Read More:
Why Uber Users with American Express Cards Will Be Getting Rides

1 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $123.25 0.00%
FB $83.30 0.00%
GOOG $548.34 0.00%
TSLA $185.00 0.00%
YHOO $45.10 0.00%

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs