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Andrew Byrne, Head of Public Policy UKI, Uber Uber: Regulation in taxi and private hire September 9th 2016

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Page 1: Uber: Regulation in taxi and private hire - University of LeedsHead-of... · 7 Growing the market Uber helps meet demand for reliable, point-to-point transportation in traditionally

Andrew Byrne, Head of Public Policy UKI, Uber

Uber: Regulation in taxi and private hire

September 9th 2016

Page 2: Uber: Regulation in taxi and private hire - University of LeedsHead-of... · 7 Growing the market Uber helps meet demand for reliable, point-to-point transportation in traditionally

Push a button – get a ride

Page 3: Uber: Regulation in taxi and private hire - University of LeedsHead-of... · 7 Growing the market Uber helps meet demand for reliable, point-to-point transportation in traditionally

Request Ride Rate

Page 4: Uber: Regulation in taxi and private hire - University of LeedsHead-of... · 7 Growing the market Uber helps meet demand for reliable, point-to-point transportation in traditionally

+70Countries(23 in Europe)

400+Cities(>50 in

Europe)

Page 5: Uber: Regulation in taxi and private hire - University of LeedsHead-of... · 7 Growing the market Uber helps meet demand for reliable, point-to-point transportation in traditionally

25+ 3m+CITIES

AND TOWNS

ACTIVE

RIDERS

40k+PARTNERS

Page 6: Uber: Regulation in taxi and private hire - University of LeedsHead-of... · 7 Growing the market Uber helps meet demand for reliable, point-to-point transportation in traditionally

6

Competition for customers

Better service, lower prices

Innovating for safety

New technology and services have changed how people get around for the better.

SAFETY BEFORE, DURING AND AFTER EVERY

TRIP

ALL PARTNERS

ARE LICENSED AND DBS

CHECKED

ALL TRIPS ARE

GPS RECORDEDFEEDBACK THAT MATTERS

Page 7: Uber: Regulation in taxi and private hire - University of LeedsHead-of... · 7 Growing the market Uber helps meet demand for reliable, point-to-point transportation in traditionally

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Growing the market

Uber helps meet demand for reliable,

point-to-point transportation in

traditionally well-served and

underserved neighborhoods alike.

Serving the underserved

Improving access in and around

low-density areas

Uber helps improve access in and

around low-density areas: In New

York, 34.6% of Uber trips start or end

in the outer boroughs, compared to

6% for yellow cabs.

Uber helps meet consumer demand for point-to-point transportation services and grows the overall

transportation pie.

Page 8: Uber: Regulation in taxi and private hire - University of LeedsHead-of... · 7 Growing the market Uber helps meet demand for reliable, point-to-point transportation in traditionally

Good news doesn’t make

headlines

Focus is often on our fight

with taxi drivers. Raises

question: are we in the

same market?

Page 9: Uber: Regulation in taxi and private hire - University of LeedsHead-of... · 7 Growing the market Uber helps meet demand for reliable, point-to-point transportation in traditionally

Ply for hire Pre book

No consumer choice: price and quality regulated, often highly

so.

Can call on the street, use bus-lanes.

Time-sensitive consumers.

Urban and business centers.

Consumer choice: broad range of price and quality options.

Must book in advance.

Price-sensitive consumers.

Less spontaneous consumers.

Outlying areas.

Ply-for-hire and pre-book are different marketsDifferent products, unless regulation forces them to be the same

Page 10: Uber: Regulation in taxi and private hire - University of LeedsHead-of... · 7 Growing the market Uber helps meet demand for reliable, point-to-point transportation in traditionally

Transition effects are not evidence of market

definitionAnalysis must be at equilibrium.

● A switch of customers from ply-for-hire to pre book may

suggest that the markets are converging.

● However, the switch may be because of the substantive

supply-side shock to the PHV market that Uber and

similar services have provided.

● Characteristics of ply-for-hire remain materially

different.

Page 11: Uber: Regulation in taxi and private hire - University of LeedsHead-of... · 7 Growing the market Uber helps meet demand for reliable, point-to-point transportation in traditionally

Ply-for-hire (taxi) markets typically suffers from regulatory capture, both over time (e.g., London)

and across cities worldwide.

Regulation often restricts the numbers of licences. Where licences can be traded, the cumulative

value of these is a lower bound on the monopoly rent arising from market power. For Paris,

this is €4bn.

Passengers experience this market power in high fares, restricted supply (e.g., queues) and

services that do not adapt to customer demand.

Because the market does not work well, regulators frequently add extra regulation to patch up or

hide the problems (e.g., making licences non tradable)

PHV market has acted as a pressure-valve. As PHV gets more efficient, valve lets off more

pressure.

Market power is in Taxi’s and comes from regulation

Page 12: Uber: Regulation in taxi and private hire - University of LeedsHead-of... · 7 Growing the market Uber helps meet demand for reliable, point-to-point transportation in traditionally

Current risk is that regulation is extended to PHV...when it is exactly now that regulation of PHV should be updated

More choice, better quality in PHV. But

constrained by outdated regs.

But more effective pressure valve for pent-up

taxi demand.

Taxi lobby tries to close off.

No reason - PHV regulation should be

proportionate and transparent. And no need

for regional or local variation.

Page 13: Uber: Regulation in taxi and private hire - University of LeedsHead-of... · 7 Growing the market Uber helps meet demand for reliable, point-to-point transportation in traditionally

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In London, TfL has

introduced mandatory

call centres, language

requirements and limits

on numbers.

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In Paris, GPS has been

banned, French and

English tests and every

candidate must have at

least €1,500 in the

bank.

Page 15: Uber: Regulation in taxi and private hire - University of LeedsHead-of... · 7 Growing the market Uber helps meet demand for reliable, point-to-point transportation in traditionally

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And in Brussels, you

have to rent a PHV for

3 hours and our partner

drivers are forbidden to

even park on a public

road without a booking.

Page 16: Uber: Regulation in taxi and private hire - University of LeedsHead-of... · 7 Growing the market Uber helps meet demand for reliable, point-to-point transportation in traditionally

• Ply for hire - by its nature - needs different regulation.

• Set price and quality appropriate for area, and don’t restrict

quantity. Ensure quality is not over-specified, providers can

innovate.

• Pre book regulation can be far lighter touch due to consumer

choice. Minimum quality and safety requirements. No need for

regional variations.

• Will result, correctly, in different viable and vibrant markets

serving different consumer needs.

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Regulatory responseReflecting differences, not forcing or restricting them

Page 17: Uber: Regulation in taxi and private hire - University of LeedsHead-of... · 7 Growing the market Uber helps meet demand for reliable, point-to-point transportation in traditionally

Thank you

Proprietary and confidential © 2016 Uber Technologies, Inc. All rights reserved. No part of this document may be

reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording, or by

any information storage or retrieval systems, without permission in writing from Uber. This document is intended only

for the use of the individual or entity to whom it is addressed and contains information that is privileged, confidential or

otherwise exempt from disclosure under applicable law. All recipients of this document are notified that the information

contained herein includes proprietary and confidential information of Uber, and recipient may not make use of,

disseminate, or in any way disclose this document or any of the enclosed information to any person other than

employees of addressee to the extent necessary for consultations with authorized personnel of Uber.

Andrew Byrne, Head of Public Policy

+44 7921 084 395

[email protected]