Las Vegas Sun

March 19, 2024

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Why Nevada lawmakers should support ridesharing

On a recent business trip to Las Vegas to promote the International CES, I had to wait 30 minutes outside the Las Vegas Convention Center for a cab. That’s time I could have spent meeting with hotel execs, scouting new exhibit space or exploring the city’s vibrant downtown tech scene. Doing business in Las Vegas can be difficult without a car — especially when you’re trying to get to places off the Strip, or to and from the convention center when there isn’t a trade show in town. While I was in town, I only found one cab company that would drive me off the Strip, and it was pretty unreliable.

Las Vegas is an outstanding host for CES, which makes it all the more frustrating that Uber and Lyft aren’t here to accommodate the transit needs of business travelers, tourists and residents. The state Senate Committee on Commerce, Labor and Energy today will hold a hearing to consider legalizing transportation network companies like Uber and Lyft. It would require ridesharing services to register for business permits and run background checks on drivers. It provides a sensible regulatory framework that would finally allow these valuable transportation services to operate safely and legally in Las Vegas.

This is not Uber’s first foray into the Las Vegas transportation network. Last October, Uber launched in Nevada, but the service shut down four weeks later when established taxi and limo companies put pressure on industry regulators to block these services. While Nevada has made great strides as an innovation-friendly state, its position on ride sharing hurts this burgeoning reputation. In fact, in the Consumer Electronics Association’s soon-to-be-released Innovation Scorecard, which recognizes states that foster pro-innovation business environments, Nevada is losing ground because of its position favoring legacy transportation services at the expense of disruptive innovators such as Uber and Lyft.

Opening city streets to disruptive innovators like Uber and Lyft is in line with Las Vegas’s downtown revitalization efforts and entrepreneurial drive. Two years ago, Zappos moved its headquarters downtown, establishing an anchor that has attracted thousands of tech workers and startups. And with affordable office space and low taxes, Las Vegas has proven to be very business-friendly.

Ridesharing would be a game changer in Las Vegas, not only for tourists and residents, but also for drivers. Competition and innovation are always good for the economy, and in this case, for consumers in the form of shorter waits and better fares. If the cab companies can’t compete, that’s their problem. The advent of the automobile spelled the end of the horse and buggy, and no one, so far as we know, lobbied lawmakers back then to keep cars off the road.

While the need for transportation services in Las Vegas is highest downtown and on the Strip, there is significant demand for alternative transportation options in surround areas like Henderson, Summerlin and North Las Vegas. In fact, in the two weeks that Uber was open for business in Las Vegas, 60 percent of trips ended outside the Strip.

Ridesharing services get people where they need to go quickly and efficiently. More, incidents of drunk driving have been shown to drop in cities where Uber and Lyft operate. Just last week, 30 people were arrested at a St. Patrick’s Day DUI checkpoint in Las Vegas for driving while intoxicated.

I spoke with a woman while I was in Vegas who said her car had broken down and she had no way of getting a ride because cabs were so unreliable. Residents of this city need different transportation options to accommodate life’s curve balls, and visitors must be able to get to all the attractions that Vegas offers in a convenient, safe and affordable manner. Ridesharing services like Uber and Lyft are good for businesses, good for consumers and good for Las Vegas’s reputation as an innovation-friendly destination.

Gary Shapiro is president and CEO of the Consumer Electronics Association and author of the New York Times best-selling books, “Ninja Innovation: The Ten Killer Strategies of the World’s Most Successful Businesses” and “The Comeback: How Innovation Will Restore the American Dream.”

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