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The argument would be that the union's negotiations established a wage floor, and uber drivers get a freerider benefit. If uber's funding dried up, and they onl
by rz2k 10y ago
The argument would be that the union's negotiations established a wage floor, and uber drivers get a freerider benefit. If uber's funding dried up, and they only paid drivers from what paasengers pay, they would have a lot more pressure to lower rates. Furthermore the union probably makes the wages sticky, rather than able to be lowered if competitors exit the market.
Though hailing cabs is inconvenient there probably is some socal utility to the medallion system beyond just rent seeking for the owners. For example the supply of cabs being steady at odd hours, and better compliance with ruling on serving all areas of a city.
- freditup 10y agoJust a small point of disagreement: Often, in busy parts of NYC, hailing a cab is much more convenient that calling an Uber. Ubers often take awhile to get to you whereas a yellow cab can be hailed within a few seconds. I am interested in the question you pose though - about the social utility of the medallion system. Perhaps there's some benefit in keeping the number of cabs limited in order to keep the roads emptier and thus more usable?
- leereeves 10y agoIf a yellow cab can be hailed within a few seconds, it sounds like there are enough cabs to serve the market. Would more cabs only lower the utilization rate and thus earnings?
- macspoofing 10y ago>If a yellow cab can be hailed within a few seconds, it sounds like there are enough cabs to serve the market. That's only true of certain areas and certain times.