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comment by b_b
b_b  ·  3960 days ago  ·  link  ·    ·  parent  ·  post: When A $65 Cab Ride Costs $192 : Planet Money : NPR

I've never quite understood why cabs are so regulated. I think services like Uber are awesome, since they can bring some entrepreneurship back to the cab business. If I get a license to do so, why the hell shouldn't I be allowed to charge whatever I want for a ride around town? It shouldn't sound weird to say: "...raising prices when demand is high is a way to get more drivers on the road to meet that demand." That's just the way the world should work.





Meriadoc  ·  3960 days ago  ·  link  ·  

It's a weird debate here in DC, to be sure. I know the president of Uber is a really shitty person, (see this NSFWCorp article I unlocked for this purpose ) and his attempts to change things are brutal to an unnecessary extreme (he also opposes licensing of cabbies), but on the other hand, I don't believe the cab association is any better. Here we require cars to have credit card readers, and yet they consistently fail. They recently had the ban on fare limits lifted, and then proceed to gouge riders exorbitantly-- to the point where Uber is about the same price (and cheaper even with Uber X)-- yet they bitch about how much Uber is gouging people.

So perhaps this is one of those cases where laissez-faire should be in place. The cabs want the business back? Make your prices reasonable. Our metro stops running at midnight on weekends, and if I need a cab, there's no fucking way I'm taking a dirty car, with a driver who has no idea where he's going and refuses to use GPS, and then pay 65 bucks, when I can get things better, cheaper, faster, and cleaner from Uber X. And on the flipside, the cab company's competition and opposition forces Uber to have that cheap alternative as well. Rarely do Adam Smith proponents have such a clean case to wax intellectual about.

In reality it will probably lead to collusion that fucks over the customers. I suppose that already started with Travis Kalanick's downright refusal to obey some laws.

mk  ·  3960 days ago  ·  link  ·  

    If I get a license to do so, why the hell shouldn't I be allowed to charge whatever I want for a ride around town?

I agree. However, I think the license should be a must. You and your car should meet certain standards. As long as the sector isn't monopolized (like ISPs in many regions), cabs should then charge what they think you can get.

cliffelam  ·  3960 days ago  ·  link  ·  

Cab Medallions are a form of unionization, which is really rent seeking.

Smaller government has less capability to interfere in things, so I'm a fan.

-XC

PS - If not clear, I am in agreement with you.