No Free Competition Allowed In Tampa Bay Taxi Business
from the competition-is-bad dept
Back in June, we wrote about how cab drivers in Tampa Bay were trying to get the city council to outlaw new competitors in the form of free ad-supported transportation from some owners of electric vehicles. Like so many cities, Tampa Bay's cab system operates on a license system, which the city and the existing cabbies work closely to limit, and do make sure prices remain artificially high. However, the free electric vehicles had thought they got around this by noting that the permit system only applied to cabs for hire. Since they weren't charging, they weren't covered. Until now.EEJ alerts us to the news that Hillsborough County transportation officials have announced that the free electric vehicles need to get permits as well -- except, oh by the way, there aren't any available. Too bad. At least one of the electric vehicle operators plans to go to court to fight this, but it may be an uphill battle. While the officials are hiding behind "safety" claims, the truth is that it's a typical move of regulatory capture by the cab companies, limiting competition so they can keep their prices artificially high and avoid any sort of business model innovation.
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Filed Under: business models, cab drivers, competition, free, licensing, tampa
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You got some splainin to do
The people making money off cabs included:
- the driver (duh)
- the cab company
- the city, via licenses
Maybe not "good money" but that still shouldn't preclude competition in and of itself.
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Re: AnonCow
Just as Mike said, this is a typical and easily forseen action by the cab companies. That the people who run the electric vehicles didn't see this coming speaks volumes about thier capabilities.
That said, don't think I am defending the cab companies. Thier attempt is only one step removed from outright thuggery. In fact, it's the economical equivalent to knee breaking and curb stomping.
It is maneuvers like this that make me shrug and say, "Eh." whenever I hear of someone breaking certain laws. I know the laws were enacted not for public safety/protection but to further the monetary goals of political/economical entities. Especially since in most cases those laws are directly in opposition to my wants and needs. If 90 percent of America isn't felons yet, it soon will be.
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Re: Re: AnonCow
can we take it easy with some of the hyperbole?
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Taxi Competition
In the end it comes down to customer service and supply and demand...in lots of cases its cheaper to take a limo.
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I do not work for a cab company...
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Re: I do not work for a cab company...
Your honest and proud philosophy should speak for itself, and if you are a skilled laborer in a skill that serves a market need, you shouldn't need a union to earn your keep.
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Re: I do not work for a cab company...
In reality, the powerless people who need unions, like Walmart workers, don't have them and people who don't need unions, like skilled tradesmen who are always in demand, have them. It makes no sense to me.
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If a vehicle used to transport the public (as a public service or other) is subject to inspections, they should all subject to inspections.
If a vehicle uses to transport the public (as a public service or other) requires a permit, they should all need permits.
A taxi is a taxi, regardless if you charge or not. They should all be subject to the same rules. The "free" taxis aren't a new business model, they are just an attempt to bypass the laws and rules put in place to protect the public and provide for safe, inspected transportation services.
It's cute - but it's dangerous in the end.
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A level playing field is fine.
Vehicle saftey is all fine and dandy.
What is not cool, is saying that they need these licenses, but cannot have them.
They are actively denying them the licenses to operate.
You caught that right? Read the article at all?
This is just an attempt to stomp out competition.
Face it, if the vehicles were unsafe at all, the people wouldn't use them. Pretty simple. And word gets around lightning fast these days. The people will know. Saying that the only reason the government is doing this is for safety is laughable.
The idea that it is dangerous is laughable.
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Unlimited taxi licenses would be like unlimited food cart licenses - at some point, there would be so many carts that nobody would make money. The customers would be satisfied for a short amount of time, and then suddenly most of the carts would disappear, and the remaining ones would double their prices.
Taxi permits are a scarcity, isn't that what techdirt is all about?
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Unlimited taxi licenses would be like unlimited food cart licenses - at some point, there would be so many carts that nobody would make money. The customers would be satisfied for a short amount of time, and then suddenly most of the carts would disappear, and the remaining ones would double their prices.
The market is a much better way to deal with these problems. Artificially setting the amount of supply is a bad thing. If licenses are required at all, they should be available to anyone, subject to safety inspections.
If there's a glut of supply, prices will drop to a market equilibrium. Great! If the market is already saturated (prices are low enough that it's not attractive to get into the business) then there won't be more permit applications anyway. If supply is currently artificially low (probably the case) then prices are artificially high. Why should the government support the taxi companies at the expense of taxi passengers? It's just regulatory capture like Mike said.
And if I'm not mistaken the city is Tampa. The bay is Tampa Bay.
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This isn't just about "making money" this is about increasing aggregate output. The government intervention here is designed to lower competition and it reduces aggregate output. That's bad for society. To the extent that Taxi Cab driving is necessary the free market will provide it. To the extent it's not as profitable as the next best thing people will go to the next best thing. Otherwise you're forcing people to go to something less profitable because of artificial restrictions on taxicab drivers so someone else isn't making enough money as a result. This is basic economics.
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In my city, taxi licenses are capped for five yrs. Then after this time, a limited number of new ones become available for a short time. This is not to keep prices high. It is done so that drivers can make a meagre living.Whether an income of $20.00 or $100.00 in a day, their expenses have to be met. This can become pricey. I am more than happy to pay the fare with a tip. Next time you take a taxi, talk to the driver re capping or open licenses.You may be surprised with the info.As an afterthought,our city counsel still leans toward the customer. I rarely have to wait for a driver.
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Techdirt is not about ARTIFICIAL scarcity. You obviously haven't been reading.
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Two words: Crystal Ball.
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I can't speak for Tampa Bay...
The taxis all have to pass rigourous safety checks
Taxi drivers have to pass certain criminal records checks
The fares are fixed at an agreed rate
In some cities drivers have to pass tests on knowledge of the area (in London they are practically tourist information centres).
Mainly it basically reduces scalping as stated by the AC above, the numbers of licenses are kept to a strict level to ensure that since the city is limiting the price of the fares, there is still enough work to keep drivers employed and the number of licenses is usually reviewed by drivers and the city periodically. You can usually tell the cities that have low regulation as the taxis tend to be shittier, more expensive and less reliable (just personal experience).
There are different licences for what we call Hackney Carridges (who can pick up off the street like a 'regular' taxi and radio cabs which are only allowed to pick up by appointment) In some cities radio cabs are allowed to vary their fares within a range or below a limit.
One thing to remember is that taxis effect an entire cities image - I've been lucky enough to have travelled extensively with work and still harbour ill feelings at the back of my head for some cities, based partly on being dumped in the middle of nowhere by some scalper who's just charged over the odds for a ride that actually turned out to be around the corner.
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Break up the gov't backed cartels
Find out via an FOI request how much your local politicos got in "campaign contributions" from the cab lobby then OUT 'EM via talk radio, the blogs, etc. A contribution is just a bribe by a prettier name.
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Free Taxis in Tampa
The City of Tampa has a long history of crushing, or just plain making it impossible, to have a taxi in Tampa unless it is Yellow Cab.
Yellow Cab has had a monopoly for a long time. This is not the first time people have been stopped from competing with Yellow Cab. A look into the requirements to start an independent taxi, or even a new taxi company, in Tampa, makes it clear that something is seriously wrong in the city of Tampa.
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Free Electric Taxi Service
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WooW
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Taxi
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