Last week, a judge in New York dismissed a suit against which, in the words of the Times, was “aimed at stifling New York City’s plans to allow taxi riders to hail yellow cabs using smartphone apps.” This ruling has paved the way for Uber to enter the New York City Market.
On Tuesday night, a company called Uber, which entered the yellow taxi-hailing market last year before being rebuffed by the city, said that its service was available, one week after a lawsuit challenging the use of such apps was dismissed. The city announced on Friday that Uber’s was so far the first and only app to be approved.
Uber has been opposed by livery and black car operators, “who argued that the program would violate the city’s longstanding ban on prearranged rides in yellow taxis.”
In New York, only yellow taxis–with medallions, can pick up fares from the street. Black cars can only be dispatched by phone. But uber provides a new dynamic. You can request a car, electronically, to pick you up wherever you are. No need to hail an expensive taxi. Just uber it!
I previously blogged about the barriers to entry for disruptive technologies here.
Update: One day later, a judge issues an injunction halting Uber.