Taxis, TNCs and Deregulation: Is History Repeating Itself?
““Regulations” are simply rules. The impact of Uber and Lyft vying to avoid safety rules is verging on taxicab deregulation. Some may see this as the way forward. But the U.S. has a failed history of taxicab deregulation.
What is Regulation and Why is it Needed?
Regulations are rules put in place to achieve social, political, environmental and economic outcomes that would otherwise not be achieved within an open marketplace. Subsequently, regulations are especially necessary when competition within a market has the potential to exploit consumers and harm society. In such instances, regulations are intended to benefit consumers and drive a healthier business environment.
However, the modern market place deems regulations as anti-innovation and anti-competition. It’s often argued that rules and regulations are unnecessary because market forces can effectively regulate companies. ……….
The History of Taxicab Regulation And Failed Deregulation
While regulation may not be beneficial or necessary for other industries, history has proven time and again that the taxi industry is different. An unregulated taxi industry is harmful to everyone – consumers, drivers and operating companies.
During the Great Depression, people jumped at the opportunity to drive unlicensed taxicabs at the absence of stable jobs. This caused an increase in accident rates, poor insurance coverage, and a painful level of road congestion. As a result, American cities quickly enacted laws to address safety, liability and driver rights issues. ……”
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