Uber Debate Blurs Cab Vs. Limo Roles

Posted on July 23, 2012 by LCT Magazine

CLARITY NEEDED: The Uber app no doubt provides a competitive, technology-based convenience for ground transportation users that matches the 24/7-connected smartphone world we live in. Uber works fine for on-demand services, such as taxi-cabs; just as you call for or hail a cab, you can text or signal for a cab via a smartphone. But how does Uber affect the pre-arranged, reservation-based business model that defines luxury chauffeured transportation? What lead time is needed to qualify as a reservation -- 5 min.? 10 min.? 1 hr.? 2 hrs? And who will decide? 

As a recent exchange in the Wall Street Journal shows, there are many questions and issues to be resolved. Editorial supporting Uber here. And a letter to the editor from the TLPA here questioning the wisdom of Uber. What can be said with certainty is that any driver instantly providing luxury sedan service curbside in response to a smartphone tap is an unregulated, illegal limo operator. Traditional chauffeured clients understand this distinction and will continue to use chauffeured services as before.

However, beyond them, three things must happen: 1) The vast smartphone carrying public will need some education on the difference between a cab and a limo sedan in an Uber-ready market; 2) Regulators and transportation operators will have to agree on a standard for cab apps vs. limo apps that each accurately matches the respective transportation business models; 3) Law enforcement against illegal Uber-limo operators or just "a dude driving around with a Town Car" will be needed more than ever, with Uber being allowed to only connect customers to legally licensed, registered, and verified taxi cabs. -- Martin Romjue, LCT editor   

View comments or post a comment on this story. (0 Comments)

More LCT Blog Blog Posts

March 8, 2017

Immigration Issues Can Hit Limo Operators

Illegal or not, immigrants in one California region spend hard-earned money on renting stretch limousines.

March 1, 2017

Did The Dent Fairy Come To Visit You?

Unlike the tooth fairy and baby teeth, the dent fairy never runs out of vehicles.

February 15, 2017

My Unofficial International LCT Show Agenda

The suite parties, charity fundraisers, and off-the-grid get togethers round out a complete global industry trade show.

February 14, 2017

How To Practice Common Sense Customer Service

It's one of the most important and difficult qualities to hire for, since it emerges in unexpected situations on the job.

February 1, 2017

3 Big Fouls From My First Uber Rides

Operators don't have much to worry about if TNC drivers keep acting like this.

See More

Facebook Comments ()

Comments (0)

Post a Comment



See More

LCT Store

LCT Magazine - June/Fact Book 2017 $12.95 * Facts & Stats * Directors & Guides *


Experience the three annual industry events for networking for business, showcasing vehicles and products, and getting the tools for success.

Read About Your Region

What’s Happening Near You?
Click on any state to see the latest industry news and events in that region.

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment



Work Truck Magazine

The number 1 resource for vocational truck fleets

Metro Magazine

Serving the bus and passenger rail industries for more than a century

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

Please sign in or register to .    Close