Uber is beneficial to Pullman’s economy

Taxis+are+more+expensive+than+an+Uber+and+provide+slower+and+less+reliable+service+to+customers+in+Pullman.

Taxis are more expensive than an Uber and provide slower and less reliable service to customers in Pullman.

HARRISON CONNER, Evergreen columnist

Uber is looking to bring its business to Pullman, allowing for students to spend their spare time giving rides, and riders to enjoy the service at a lower cost.

However, the old guard of taxi companies is refusing to allow this change to take place. Instead, they’ve called on the government to put a roadblock on Uber’s progress.

The City of Pullman has an ordinance in place that requires extensive background checks for taxi drivers, serving as a protection for cab companies in town.

College Cabs CEO Zane Larsen told The Daily Evergreen in an article on Jan. 27 that he believed passengers’ safety might be at risk riding with Uber because the driver may have a bad driving record and may not maintain their car.

But it’s a ridiculous notion to try to shut down competitors because you believe their service wouldn’t be as good as yours. If Larsen’s company is so efficient at delivering good cab service, he wouldn’t have to worry about competition because his company would easily beat them.

Uber would bring competition to the market, it’s true, but competition makes markets more efficient.

Eric Jessup, a WSU research assistant professor of economics and assistant director of the Freight Policy Transportation Institute, explained that as an economist, he thinks a more competitive transportation system in Pullman would be a good thing.

“The value of Uber or Lyft to me is that it expands the market at a lower cost because they allow so many more users,” Jessup said.

Jessup explained that he once got a cab from the Pullman airport to his house about two miles away, and paid twenty dollars for the trip.

“Consumers are going to pay higher prices and get lower service,” Jessup said. “(With Uber), the rates will be lower, and the service better, that population that is going to use it expands.”

As a result of living in a small town, Jessup said there isn’t a lot of demand for taxi companies. But Uber makes it economically viable to have an efficient driving service.

There’s another layer to this as well. One of the many perks of allowing Uber is that when someone is intoxicated, they can get a ride through Uber and will not drive drunk. In a college town, this is something students desperately need.

So, the lines are drawn: either we protect the cab companies and continue to have high rates for bad service, or we choose more service at less cost and force the cab companies to compete.

For the consumer, the choice is clear. The Pullman City Council has to act in favor of free enterprise.

If Pullman residents want to keep taking cabs, they will and Uber will leave. If people would rather pay less for Uber, they will, and taxi companies might close down. But either way, the residents of Pullman will be the ones to make the decision.

Harrison Conner is a junior economics major from Stanwood. He can be contacted at 335-2290 or by [email protected]. The opinions expressed in this column are not necessarily those of the staff of The Daily Evergreen or those of The Office of Student Media.