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> AFAIK; they have no long-term capital investment or debt trap Medallions?
by nebabyte 10y ago
> AFAIK; they have no long-term capital investment or debt trap
Medallions?
- hackuser 10y ago> Medallions? The medallion owners make a long-term capital investment. The drivers lease the car per shift or per 24 hours, and have no such investment. (As I understand it.)
- lokedhs 10y agoMy understanding is that very few places have a medallion system. It's apparently quite common in the US, but I can't say I've heard about it anywhere else. Does anyone have statistics on this?
- hackuser 10y agoHow do other places control supply of taxis, or do they not do that at all?
- lokedhs 10y agoI don't know, and it's likely they don't do it at all. Why would the number of taxis need to be controlled? I don't know much about the taxi industry and perhaps there is some good reason for it that I am simply not aware of?
- hackuser 10y agoMy baseless assumption always has been that it is for two reasons: * It's one of those situations where the free market fails. Because anyone with a car can give someone a ride, it creates a race to the bottom and nobody can make money. You'll note that one criticism of Uber is that they create exactly that situation. * Safety and fraud prevention for customers Note that the community has an interest in quality transportation, including for tourists.
- lokedhs 10y agoBut does controlling the number of taxis achieve those goals? The countries that I have experience with all have regulations attempting to ensure those very things that you mentioned, but none of them actively limits the number of taxis.