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I think what the parent is saying is that you need to watch what you mean when you say "them" in the context of incentive. If a single cab driver or small comp

by netcan 11y ago

I think what the parent is saying is that you need to watch what you mean when you say "them" in the context of incentive. If a single cab driver or small company stops doing these things he takes 100% of the downside (loses the extra ad and tip revenue) and 1 millionth of the upside (making people like taxis more in general so that the industry can compete with Uber). They don't have repeat business. Customers choose/are sent taxis randomly. Prices are fixed. Hence, there is no way for "signals" to travel up and down rewarding and punishing better and worse operators.

SilasX 11y ago
But they have the possibility of exit, right? They generally don't own the car or medallion, but only rent them, so it's pretty easy for them to jump ship and use their personal car for UberX/Lyft. That in turn should bid down medallion/car rental fees and thus the driver take-home gross, even with constant taxi rates for passengers.