The New Orleans City Council on Thursday approved a new ordinance that will allow Uber and other similar ride-sharing companies to offer "luxury taxi-like services" in the city.
Uber is on its way to New Orleans.
According to a report from Reuters, the New Orleans City Council on Thursday approved a new ordinance that will allow Uber and other similar ride-sharing companies to offer “luxury taxi-like services” in the city. The victory will allow Uber to move into the New Orleans market for the first time, but the victory is only a partial one for the company.
The “luxury” stipulation in the ordinance only allows Uber to bring its “Black” service to the city. Uber Black puts passengers in contact with independent drivers of luxury cars, allowing them to secure fancy transportation at a cheaper rate (and at shorter notice) than they would likely be able to find from an actual limo company.
The problem for Uber is that Black only encompasses a portion of its business strategy. The company also operates UberX, which is a less fancy and less expensive version of the same type of ride-sharing taxi service. New Orleans has not yet issued approval of UberX (or of similar consumer-level services like Lyft), probably because of the way that such services would compete with taxi cab companies. Already, taxi firms around the country – particularly in cities like Chicago and Washington D.C. – have sued Uber in attempt to keep the UberX service out of their cities, and by extension, protect their livelihoods.
There is still concern that even Uber Black could threaten the taxi industry in New Orleans. Based on the Reuters article, one city councilwoman pointed out that recent city regulatory measures have made taxi cabs expensive to own and operate. If drivers with luxury cars are allowed to accept passengers in their own vehicles, then will the taxi industry be able to stand up to the influx of new transportation options facing customers?
Either way, the advance of Uber has been relentless this year, and even if UberX does not get approval to go ahead in New Orleans, there are still plenty of other cities that the company could target.
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