Quebec passes law to regulate Uber

Post by stormbrew » Sat, Jun 11, 2016, 3:53 AM UTC

JoshTriplett wrote: post #5

teej wrote: post #3

Earlier quoted context omitted.

Isn't $200k the free market cost? The government isn't pocketing that money. That's the price you would expect from an asset that generates income with a limited supply. Edit: why am I down voted to max? The government limits supply but the medallions are still sold on the market.

No, the supply is artificially limited by the government; there's no free market involved. That $200k is paid to the government. (The claimed rationale for limiting the number of taxis is to reduce traffic. I would suspect the actual rationale is to favor the existing taxi businesses that already have licenses and don't want competition.)

Post by tn13 » Sat, Jun 11, 2016, 5:12 AM UTC

teej wrote: post #3

jsmeaton wrote: post #2

The problem with regulation isn't Uber. It's the extraordinary costs required to operate a taxi - mostly the $200k plate. If I can get a background check and a card certifying me to be allowed to work with children for about $50, why does it cost nearly $200k to get a taxi license. Require licenses, reduce the costs to improve competition, and let the various companies compete on service.

Isn't $200k the free market cost? The government isn't pocketing that money. That's the price you would expect from an asset that generates income with a limited supply. Edit: why am I down voted to max? The government limits supply but the medallions are still sold on the market.

Post by rdlecler1 » Sat, Jun 11, 2016, 5:44 AM UTC

jclulow wrote: post #15

alasano wrote: post #11

I don't know if this reflects poorly on Uber or current taxi legislation. Living in Québec I've never had a bad experience with taxi drivers the way people seem to have in NYC, etc. Uber was still far better, if anything just for how proud some drivers were of being part of it. The lower barrier of entry seemed like a positive thing overall. A nice woman drove me once, offered me starburst candy and a bottle of water…

As far as I can tell, the drive to pamper riders comes from the fear of being cut off from driving for receiving too many sub-five star ratings. I would feel differently about it if Uber were handing out a "water bottle" stipend.

Post by aorth » Sat, Jun 11, 2016, 6:52 AM UTC

teej wrote: post #3

jsmeaton wrote: post #2

The problem with regulation isn't Uber. It's the extraordinary costs required to operate a taxi - mostly the $200k plate. If I can get a background check and a card certifying me to be allowed to work with children for about $50, why does it cost nearly $200k to get a taxi license. Require licenses, reduce the costs to improve competition, and let the various companies compete on service.

Isn't $200k the free market cost? The government isn't pocketing that money. That's the price you would expect from an asset that generates income with a limited supply. Edit: why am I down voted to max? The government limits supply but the medallions are still sold on the market.

Post by ketzu » Sat, Jun 11, 2016, 7:10 AM UTC

ende wrote: post #13

stormbrew wrote: post #12

Earlier quoted context omitted.

Are you talking specifically about Quebec here? This kind of thing varies a lot by jurisdiction, but in many jurisdictions the high costs for a plate are not paid to the government, but paid on a grey market to a prior owner, with the fee for registration being nominal except for the fact that no one gets to register any more. In many cities (including mine), people own plates as a retirement investment and are fight…

The payment to the government is irrelevant. The point is that the government artificially restricts the number of occupational licenses.