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I worked as a cab driver for ~9 years in Phoenix and most of what you say doesn’t apply. Pre-Uber/Lyft to become a “taxi” all you had to do was take your car d

I worked as a cab driver for ~9 years in Phoenix and most of what you say doesn’t apply. Pre-Uber/Lyft to become a “taxi” all you had to do was take your car down to JJ at weights and measures where he’d make sure your meter was accurate, the rates were posted on the car and you had the proper commercial insurance. Then he’d give you the paperwork to get your “Z”license plate (not entirely sure how the plate thing worked since I never actually asked anyone) and a sticker for the back window. Bingo, now you’re a cab. There were tons of what we called “gypsie cabs” (which, apparently, was a little racist) running around ripping people off left and right because as long as the rate was posted you could charge whatever you wanted legally. Then Uber/Lyft came along and didn’t go see JJ, didn’t carry expensive commercial insurance and didn’t post their rates so they could charge whatever they wanted willy-nilly. Not really sure how it is “ possible for a driver to make more money with lower fares by increasing the percentage of time that passengers are in the car” when the nature of the business is taking people to where they want to go and hoping there’s another fare in the immediate area else you go deadhead to a better area. Oh, and trying not to get burned on a fare and/or raped and murdered or just straight up robbed.

aeternum 5y ago
Phoenix afaik doesn't have medallions so that part doesn't apply, but from what you describe there definitely are market inefficiencies. People don't like getting ripped off or having the fare change while en-route. Uber/Lyft at least told you upfront what you would pay and it was generally much less expensive than cabs. This increased ridership in most cities and thereby made it more likely drivers would have a passenger waiting at the destination.
- UncleEntity 5y ago
  Of course people don’t like getting ripped of. Like the one who paid $25ish for a Lyft (because surge) which cost $4.65 in a taxi, did that trip many, many times as it was a popular bar-hop and know how much it costs. But mostly it was the independent cabs ripping people off because they didn’t know to not get into Disco Cab because they were drunk and the cars (purposely) looked the same as the honest cabs. So, yeah, Silicon Valley subsided rides were a lot cheaper because their whole plan was to drive out the competition and then raise prices to the actual cost of what it takes to haul people around which, surprisingly, is what the cab companies used to charge before Covid pretty much killed them off for good. Last time I was in Phoenix I couldn’t even get a cab to come pick me up…
  - erik_seaberg 5y ago
    I drove airport shuttles years ago in Seattle, and we rescued people whose cabs simply never showed up. It’s healthy if reputation affects competing businesses’ volume.

aeternum 5y ago

Phoenix afaik doesn't have medallions so that part doesn't apply, but from what you describe there definitely are market inefficiencies. People don't like getting ripped off or having the fare change while en-route. Uber/Lyft at least told you upfront what you would pay and it was generally much less expensive than cabs. This increased ridership in most cities and thereby made it more likely drivers would have a passenger waiting at the destination.

UncleEntity 5y ago
Of course people don’t like getting ripped of. Like the one who paid $25ish for a Lyft (because surge) which cost $4.65 in a taxi, did that trip many, many times as it was a popular bar-hop and know how much it costs. But mostly it was the independent cabs ripping people off because they didn’t know to not get into Disco Cab because they were drunk and the cars (purposely) looked the same as the honest cabs. So, yeah, Silicon Valley subsided rides were a lot cheaper because their whole plan was to drive out the competition and then raise prices to the actual cost of what it takes to haul people around which, surprisingly, is what the cab companies used to charge before Covid pretty much killed them off for good. Last time I was in Phoenix I couldn’t even get a cab to come pick me up…
- erik_seaberg 5y ago
  I drove airport shuttles years ago in Seattle, and we rescued people whose cabs simply never showed up. It’s healthy if reputation affects competing businesses’ volume.