Massachussets Settles Dilemma Between Taxi Drivers And Uber Drivers

Since the rise and popularity of ridesharing companies, prominently Uber, taxi companies have eyed ridesharing companies as a strong competitor. In all honesty, the introduction of these types of companies have hurt the taxis financially. People are very quick to just hop on their phones and a hail a ride from an Uber or Lyft app. This has become the new modern of way of hailing a ride. The dilemma between both taxi companies and ridesharing companies has gotten so intense governments around the country has intervened. Perhaps, Massachusetts is one state that is creating legislation that helps taxi companies still feel like they have some skin left in the game during this revolutionary era where people are choosing startup tech companies over the iconic yellow cab.

For every ride that a ridesharing company has, the company is responsible for a $.20 fee to the state of Massachusetts. Of course, this is not something billion dollar ridesharing companies are excited about and neither are their customers. This fee will in some way be passed down to the customers of these giant tech companies. Now, these companies are facing offering more expensive rides to customers or taking a loss in profit to pay this additional fee to the state. The state hopes this will even the playing score amongst giant ridesharing companies and taxi companies.

Five cents of the twenty cent fee will be given to taxi companies. This is an effort to save a struggling industry. Perhaps, the state of Massachusetts will be able to save an industry from completely dying out. There should be no more parking issues with this legislation set in place. Why would customers want to pay more? Why would big corporations want to pay more? With an increase in fees and rates, wouldn’t this hamper the business of companies like Lyft and Uber?

Some may say this will decrease the competition between ridesharing companies and taxi companies. But has anyone thought about what if customers don’t mind paying the extra twenty cent fee. Perhaps, a new generation of riders cling onto startup tech companies like Lyft and Uber that are apart of a culture of one of America’s largest generations. Ridesharing companies, startups, tech companies, freelance workers, gig workers are all something probably a large percentage of Uber’s and Lyft’s customers can relate to and perhaps want to be customers of these companies despite a hike in fees.