Counterpoint: Sure, Uber has value, but let's all play by the same rules

To read Tyler Cowen's commentary ("Calculating the consumer value — and losses — of Uber" Sept. 12), you would wonder how the world functioned before the app-based rideshare company came on the scene just four years ago.

In fact, Cowen praises Uber for finally providing urbanites a way to get to the store if they "run out of milk or dog food." Yes! Finally an end to all of those starving labradoodles on Nicollet Mall.

Unfortunately, Cowen and the economic study he cites fail to account for a few important points:

First, the reality is that for many, Uber is not an option. This is especially true for low-income people and the elderly. No smartphone, no Uber. No credit card, no Uber. Want to pay cash? No Uber.

Taxis are required to take cash or credit, and we also have an app where you can pay cash in the cab. I am glad Cowen and all of those living in condos and lofts can get a cheap ride to Whole Foods for cat food, but what about the 85-year-old grandmother on the North Side who needs to get her medications?

The fact is that taxi cabs are and will remain an essential part of the transportation infrastructure. At Blue and White Taxi, we provide over 35,000 medical-related rides every month. These are people getting to the doctor, the clinic or the hospital.

Uber cannot and would not provide these essential medical rides. Why? Because Uber is opposed to any regulation. To comply with state law, our drivers must complete a national fingerprint background check, and go through certified first-aid training, defensive-driving school, and sensitivity training. Uber drivers have none of this training.

Second, sure, UberX can provide you a cheap ride, but at whose expense? The reality is, the Uber driver is making $2-$3 per hour during nonsurge times. Where is the social benefit to the driver of Uber taking 25 percent of the fare and not allowing customers to tip drivers?

Third, Cowen's study fails to account for the numerous times rideshare companies have conspired to overcharge riders. Just this week, a $60 million class-action lawsuit was filed in New York accusing drivers for the rideshare company Lyft of overcharging riders for tolls.

Fourth, if, as Cowen claims, UberX produces $6.8 billion in social value a year, that has a cost. According to financial reports, Uber lost $1.2 billion in the first six months of 2016. It will be able to sustain those losses only for so long, before prices rise — undermining much of the social gain Cowen applauds.

Finally, Uber's refusal to provide even minimal government-run background checks has a huge reverse social cost that is not calculated by the study. Just this week in the Twin Cities, an Uber driver picked up an underage girl and forced her back to his apartment ("Charge: Girl held by Uber driver uses phone for help," Sept. 16). What is the cost of that incident and the thousands like it across the country?

At Blue and White, we have not asked to keep competition like Uber out of the market; competition makes us better. We recently launched CruzCab App with lower fares for booking. We have modernized our fleet, and our drivers are attending additional training.

No question Uber has helped modernize for-hire transportation. But let's remember, low fares are nice — but so is playing by the rules.