Problem: While the services listed in our last post offer worthwhile alternatives to conventional modes of getting around, several less laudable features of our urban and suburban transportation environments remain unchanged. Taxicabs, for instance, still crowd the streets of most cities, yet they benefit company owners more than either consumers or drivers. How can we change the inefficiencies of the taxicab industry in a way that: a) increases access to ground transportation in city and suburb, and b) caters to Americans’ penchant for driving by continuing to build a sellers’ market for ride-sharing?
1) Taxi Cab transportation is a highly regulated market with enormous barriers to entry. As a result there are too few cabs in most places and prices tend to be pretty high. This is mostly because of the steep cost of purchasing a medallion required to run a taxi, particularly in New York City: “Because of their high prices (often over $400,000) medallions (and most cabs) are owned by investment companies and are leased to drivers (aka "hacks”).“
2) In order to drive a cab, you must work for a large corporation, which is responsible for ensuring quality and safety. While these are essential regulations, there are also better and more efficient ways to solve this issue in the 21st century. We’ve seen the proliferation of couchsurfing. Why not more digital hitch hiking?
Citation: Andrew Magliozzi and Nathaniel Levy