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1994, there were 40,000 drivers with only 11,787 licenses available (Skok, 2003). The
medallion taxi system in the US was unstainable for drivers and their livelihoods because of
the cost of securing a medallion, coupled with exorbitant taxi fares for taxis in San Francisco
(see Lam et al., 2006, pp. 30-39). While the value for medallions has depreciated to $80,000
and is now regulated to 13,500 licenses per year, there are more drivers in debt on average of
$600,000 (Khafagy, 2021).
Lyft and SideCar also received a similar notice, and eventually, they were all fined
$20,000 for not adhering to the regulation (Chen, 2012). According to the CPUC, Uber
violated two sections of the Public Utility Code: (a) operated as a charter-party carrier of
passengers without an operating authority. (b) advertised as a charter-party carrier without
including the number of a permit or certificate issued by the commission (CPUC PSG-3018,
2012). In response, UberCab changed its name to Uber both as a response to the regulatory
bodies (indicating that it is not a taxicab service) and in response to competitors based on a
lower-priced service and other subsequent products (Flores and Rayle, 2017). Alongside
California, regulators in about 13 other cities, including New York, Los Angeles, Washington,
and Chicago, further drafted guidelines that address the concerns of taxi drivers based on (a).
a luxury car must not use a GPS device as a meter in calculating fares; (b). while driving, an
electronic hailed trip must not be accepted via a smartphone; (c). a request made less than 30
minutes in advance must not be accepted by a driver (Chen, 2012). These guidelines were
targeted at constraining the power of Uber, but instead, it increased its visibility to the world.
In addition, despite the regulations and enforcements, Uber was successful in lobbying in at
least 50 states and cities to reinstate their service in places where it was banned (e.g., New
York, Austin, Philadelphia) or continued to operate without clear evidence of compliance (e.g.,
Seattle, Chicago) (Helderman, 2014; Dubal et al., 2018).
So far, Uber has experienced regulatory challenges where the platform has been banned
or experienced legal challenges globally, especially between 2010 to 2018, even in contexts
such as Sweden, which has possessed a deregulated market since the 1990s, which created a
fluid system for taxi operators and drivers (Thelan, 2018). Although Uber had a relatively
straightforward emergence in Sweden, the platform had to succumb to specific rules and
regulations, such as the requirement of commercial licensing. Other examples of more intense
regulatory battles were in parts of Europe (e.g., Bulgaria, Denmark, Germany); North America
(e.g., Oregon in the US, Vancouver in Canada); and Asia-Pacific (China, Northern Territory in
Australia, most of Japan) (Hao 2017). These regulatory issues border around worker status,
insurance, employee benefits, taxi licensing, safety, public goods (e.g., congestion), and