6 ms·

"The traditional taxi service is terrible for drivers" The traditional taxi service, if bad for drivers, is simply because there are enough drivers that will w

by larrys 12y ago

"The traditional taxi service is terrible for drivers" The traditional taxi service, if bad for drivers, is simply because there are enough drivers that will work and be treated like that to make it terrible for the group as a whole. This happens in any employment situation where supply exceeds demand. Because there is a low barrier to entry to be a driver as well as lack of other opportunities for drivers the people in charge get leverage. Likewise "superstar" developers are treated like royalty and well paid in this industry. If all the sudden there were 4 times the superstar developers vying for jobs (assuming demand stays fixed and a superstar is a superstar) all that would go out the window and wages and benefits would almost certainly drop. I'm a pretty good photographer but decided many years ago that since photography had a low barrier to entry, and only a few made it to the top, wages were decreased by competition to make it a non attractive career.

coryrc 12y ago
Except, now Uber/Lyft has vastly increased supply and is better for drivers.
NhanH 12y ago
The difference is that in a lot of cases, there are kind of a "hard cap" for demand that can't be increased easily without a lot of factor (accountant, lawyer comes to mind). However, I believe there are certain professions where if you're only concerned with the superstar level, the sky is the limit (demand-wise): there are no artificial (market) cap on the value you can added to the society. That is until human is immortal, energy is unlimited (to a first approximation), and/ or the Singularity happened.
conanbatt 12y ago
Supply and demand is not the only actor at play in employment. Otherwise, you wouldnt need minimum wage, or laws of any kind to protect employees (or businesses) from the other side. And also, in the particular taxi-driving business, the problem is not supply/demand of drivers, its of city permits to be a taxi driver. Drivers working for Uber/Lyft do not take the same abuse as taxi drivers. The taxi business is a racket, made by people that took that business, got an advantage in that time, and could make laws to their own benefit. Uber found a loophole in those laws, and got to be a winning player in that market. And now, they are going to be one of the actors in redefining the new set of laws regarding this,
- argonaut 12y ago
  The effects of the minimum wage and the effects of city permits are precisely supply and demand effects (specifically, a minimum wage is a price floor in the labor market, and city permits constrain supply).
zo1 12y ago
It's bad for them because the market has, over time, negated the advantages of all the monopoly privileges they used to have.
brc 12y ago
The problem for drivers isn't a lack of demand for their services. The problem for drivers is that the buyers for their services are not the people who need a lift, but are the people that own the licensed cabs. The buyers face a monopsony for their services, which always ends up in poor treatment. The problem is not a mismatch between supply and demand. It is an artificial barrier between the supply and demand meeting up.

by larrys 12y ago

coryrc 12y ago

Except, now Uber/Lyft has vastly increased supply and is better for drivers.

NhanH 12y ago

The difference is that in a lot of cases, there are kind of a "hard cap" for demand that can't be increased easily without a lot of factor (accountant, lawyer comes to mind). However, I believe there are certain professions where if you're only concerned with the superstar level, the sky is the limit (demand-wise): there are no artificial (market) cap on the value you can added to the society. That is until human is immortal, energy is unlimited (to a first approximation), and/ or the Singularity happened.

conanbatt 12y ago

Supply and demand is not the only actor at play in employment. Otherwise, you wouldnt need minimum wage, or laws of any kind to protect employees (or businesses) from the other side. And also, in the particular taxi-driving business, the problem is not supply/demand of drivers, its of city permits to be a taxi driver. Drivers working for Uber/Lyft do not take the same abuse as taxi drivers. The taxi business is a racket, made by people that took that business, got an advantage in that time, and could make laws to their own benefit. Uber found a loophole in those laws, and got to be a winning player in that market. And now, they are going to be one of the actors in redefining the new set of laws regarding this,

argonaut 12y ago
The effects of the minimum wage and the effects of city permits are precisely supply and demand effects (specifically, a minimum wage is a price floor in the labor market, and city permits constrain supply).

zo1 12y ago

It's bad for them because the market has, over time, negated the advantages of all the monopoly privileges they used to have.

brc 12y ago

The problem for drivers isn't a lack of demand for their services. The problem for drivers is that the buyers for their services are not the people who need a lift, but are the people that own the licensed cabs. The buyers face a monopsony for their services, which always ends up in poor treatment. The problem is not a mismatch between supply and demand. It is an artificial barrier between the supply and demand meeting up.