Uber-high stakes: Taxi/ride-share wars pulling up at O'Hare
Two business travelers waiting for suburban taxis at O'Hare International Airport recently shared different views on what Chicago opening up the lucrative airport pickup market to ride-sharing companies means. One thing's for sure: The stakes are Uber-high for the businesses involved.
“I'm so used to American Taxi,” said
Byron Wigodner of Buffalo Grove, referring to the suburban cab service. “American Taxi is pretty good.”
Wigodner has never tried Uber. “It's something to consider,” he said Friday. “I'd have to look at their rates.”
Meanwhile, Tom Ester of Arlington Heights loves Uber because the fast-growing ride-share provider is “more flexible. It's amazing how easy it is to use it,” he said.
“It's been a great experience,” Ester added, saying he'll jump aboard when ride-shares Uber, Lyft and Sidecar start operating at the airports.
The Chicago City Council made the game-changing decision to allow ride-shares at Midway and O'Hare as part of last week's 2016 budget vote. No official start date had been announced as of Sunday, but it could begin before the new year if logistics are worked out.
Companies such as American Taxi are preparing for a showdown at the airports, considered the final frontier in a market that's shifting faster than a 747. Cabbies say they're ready to compete with ride-shares, contending traditional taxis provide better insurance and secure background checks. But “we want a fair playing field,” said American Taxi President Joe Zayed of Glendale Heights.
One issue for taxi drivers is lengthy delays at O'Hare's “stamp booth,” where incoming cabs have to pay a $4 fee before they can reach customers, American Taxi co-owner John Coyne said. Drivers also pay a $3-a-day fee.
“When it's busy like on a Thursday night, the line going through the choke point can be 60 to 80 cabs long,” Coyne said. “There's an army of people on the lower level waiting for their taxis.”
Another potential concern is if the city allows ride-shares to pick up passengers on the upper departures level, a location that's less congested than the lower arrivals area where taxis hang out, cabbies said.
Uber spokeswoman Brooke Anderson said, “We're excited about how this new policy will give suburban residents more transportation choices at our local airports.
“It will improve their overall travel experience and save them unnecessary trips to the airport,” she said. “When a friend or family member touches down at O'Hare to come visit, they'll soon be able to just push a button and get a ride to the suburbs.”
Regarding security, Uber officials said passengers can see the driver's picture, ratings and car before committing. The company is insured under a commercial policy, and rates are typically 50 percent lower than traditional fares, Anderson said.
Uber driver Eli Martin, who grew up in the Barrington area, called the move “a sign of progress.” Now after dropping passengers off at O'Hare, “I'm not going to come back empty-handed,” he said.
Chicago expects to receive about $38.4 million from ride-shares as a result of the budget actions. Fees of $5 will be added to pickups and drop-offs, respectively, along with a 2-cent charge per ride.
State Rep. David Harris of Arlington Heights, a member of the House Transportation Committee, has “never used Uber, but my son and his friends use it all the time,” he said. “The ride-sharing services are what the younger generation is using, and there are only going to be more of them in the future.”
That said, Harris has concerns over the “competitive advantage they have over traditional taxi services.”
Given its suburban penetration and upgrades like apps passengers can pay with, American Taxi should weather the Uber-storm, but “let's make this fair,” Manager Dan Coyne said.
<h3 class="leadin">One more thing
When I reached out to Lyft, a spokesman informed me that you could have gotten a “zombie” as your driver on Halloween. Who knew?
Meanwhile, Sidecar has no plans to operate in the suburbs.
Got an opinion on ride-shares, traditional cabs or zombie drivers? I know you do. Drop me an email at mpyke@dailyherald.com.
<h3 class="leadin">You should know
It's been about four months since former Illinois tollway Inspector General Jim Wagner retired, and, so far, no sign of a replacement from Gov. Bruce Rauner. That leaves the agency without its chief watchdog, a position that was beefed up after the Blagojevich scandal. It also means the agency missed a September deadline for the always lively biannual report on internal investigations.
<h3 class="leadin">Upcoming
Metra kicks off a series of budget hearings from 5 to 8 p.m. Wednesday and Thursday. Wednesday locations are: Woodstock City Hall, 121 W. Calhoun St.; the Hanover Park Police Department, 2011 W. Lake St.; and Chicago Union Station. Thursday locations are: Mundelein Village Hall, 300 Plaza Circle; Clarendon Hills Village Hall, 1 N. Prospect Ave., and Kane County Government Center, 719 Batavia Ave., Geneva.
<h3 class="leadin">Gridlock alert
Surprise - some good news. The tollway just opened up new lanes on the Elgin-O'Hare Expressway between Irving Park and Meacham roads.
<h3 class="leadin">Noise lowdown
Got questions about O'Hare noise and how the airfield works? Drop into a free workshop from 5 to 6:30 p.m. Tuesday in Bensenville. The event is organized by the Chicago Department of Aviation and takes place at the Bensenville police station, 345 E. Green St.