A former limousine driver and current editor of Limo Insider Report has written a persuasive letter of complaint about Uber to the U.S. Attorney General, accusing the ride-sharing company of circumventing all sorts of laws and regulations. Similarly, the Taxicab, Limousine, and Paratransit Association argues that Uber and Lyft are risky for consumers to use. These are both good points.
At the same time, at least some of those regulations are in place for the specific purpose of limiting competition within the taxi industry. As a result, as the Washington Post observes, taxi medallions “have been the best investment in America for years.”
When regulations are in place to protect the providers of a good or service, the consumers usually are the losers. Politicians, policy makers, and opinion leaders need to understand that the true value of a policy must be judged from the point of view of consumers, not providers.
