Category: Race to the bottom

12 Feb

Uber: The Hits Just Keep On Coming

Taxi Truths News, Race to the bottom, Regulation, Story

Latest round of Uber price cuts accelerate the “race to the bottom.”

  • Customer service and vehicle safety will decline as drivers try to make up for less revenue.
  • This is the exact pattern NYC faced in the 1930s and why the Haas Act was passed.
  • Taxi medallion financial industry players, like lenders, will reap the benefits.

The glory days of Uber (Private:UBER) are over. Uber is facing increasing headwinds as it enters 2016. Recent developments may be good news for taxi medallion financial industry players and those considering investing in Uber privately or a possible IPO should be cautious.

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Source: Seeking Alpha

26 Nov

Competition Commissioner: Taxis, ride-share apps and consumers deserve a level playing field

Taxi Truths Driver Satisfaction, News, Race to the bottom, Regulation, Safety Issues, Story, Surge pricing

When was the last time you watched a movie on VHS? In the early 2000s, nobody was talking about banning DVDs to protect those who manufactured VCRs and video tapes. Instead, we embraced innovation and benefited from the superior quality of DVDs.

Why, then, are some regulators taking steps to ban ride-sharing applications?

Apps, such as those offered by Uber and Lyft, can provide Canadians with more choice, lower prices and better service. Recent reports found that Uber prices in Ottawa were about 36 per cent less than taxi fares, and that passengers in Toronto waited an average of nine minutes for a traditional taxi, but two to four minutes for an Uber driver.

Despite these benefits, both ride sharing and taxi drivers – and their customers – are suffering due to taxi regulations that restrict the competitiveness of ride-sharing apps in the marketplace.

While the taxi industry is heavily regulated in Canada, ride-sharing services are not. This creates an uneven playing field in the industry.

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Source: The Globe and Mail