Companies Like Uber Offer Less Opportunity For Graft

In my experience, taxis are hideously expensive. To take a taxi from 90035 to LAX with no traffic will cost you about $30. To take Uber will cost you about $20 and you will be more likely to get an English-speaking driver. I’ve only had good times with Uber. I just wish its app worked for my Blackberry.

Taking the Los Angeles public bus system was much better than I expected, just so long as you are not picking up people from icky parts of town.

Glenn Reynolds writes:

The regulatory knives are out for Uber and Lyft, two ride-sharing services that make life easier for consumers and provide employment opportunities in a stagnant economy. Why are regulators unhappy? Basically, because these new services offer insufficient opportunity for graft.

Services like Uber and Lyft disrupt the current regulatory environment. I have the Uber app on my phone. If I need a car in areas where Uber operates, it looks up where I am using GPS, matches me with participating drivers nearby, and in my experience gets me a Town Car in just a few minutes. It’s the comfort of a limo service, with the convenience of a taxicab. I get a better service, the driver gets a job, but now there’s competition for those entrenched companies.

In most cities, traditional taxi services are regulated by some sort of taxi commission. Similarly, limo services — the ones that provide the black Town Cars favored by big shots (and used by many Uber drivers) — are regulated by some sort of livery office. The rules strictly forbid the two sectors of the market from competing with one another. And, generally, entry is limited so that neither faces too much competition in general. In holding down competition, these regulators act on behalf of the entities they supposedly regulate for the benefit of consumers.

About Luke Ford

I've written five books (see Amazon.com). My work has been covered in the New York Times, the Los Angeles Times, and on 60 Minutes. I teach Alexander Technique in Beverly Hills (Alexander90210.com).
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