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Sweden proposes ban on ride-sharing services that make profits

reuters.com

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Re: Sweden proposes ban on ride-sharing services that make profits

#31

Post by wavefunction »

nothrabannosir wrote: post #19
kalleboo wrote: post #3

So, they want to encourage ride-sharing in the original meaning - carpooling. Not the "taxi company in disguise" meaning. Sounds fair enough to me. For context, the taxi regulation in Sweden is very light. There is no medallion system limiting the number of cars, and no regulation of prices. You just need an extended driver's license, an approved taxi-meter (same as how grocery stores need their scales to be approved…

some private taxi drivers will prey on tourists by overpricing their services by 3x and waiting at airports. Since their rip-off prices are displayed right there in the window, it's fully legal. Tourists don't know the typical price of a taxi, and fresh off an airplane are not sure what the local currency rate is (Sweden isn't on the Euro), and hence get ripped off. Typically this should lead to more competition ther…

Taxi thugs? Thug means someone who intimidates with threats of violence to get their way.

Why would any taxi-driver feel like upsetting the apple-cart?

Re: Sweden proposes ban on ride-sharing services that make profits

#32

Post by zzleeper »

nothrabannosir wrote: post #19
kalleboo wrote: post #3

So, they want to encourage ride-sharing in the original meaning - carpooling. Not the "taxi company in disguise" meaning. Sounds fair enough to me. For context, the taxi regulation in Sweden is very light. There is no medallion system limiting the number of cars, and no regulation of prices. You just need an extended driver's license, an approved taxi-meter (same as how grocery stores need their scales to be approved…

some private taxi drivers will prey on tourists by overpricing their services by 3x and waiting at airports. Since their rip-off prices are displayed right there in the window, it's fully legal. Tourists don't know the typical price of a taxi, and fresh off an airplane are not sure what the local currency rate is (Sweden isn't on the Euro), and hence get ripped off. Typically this should lead to more competition ther…

Not really. There is an econ paper that explains why (Xavier Gabaix's shrouded prices theory), but the idea is this:

There are some consumers that are naive (tourists in this case) and you can exploit them (go to the airport, and wait until you get a naive guy).

Now, suppose a competitor can find a way to educate consumers: you print pamphlets listing the true costs and hire someone to distribute them everywhere. Now tourists are well informed, but what's the benefit for the competitor? It just did something expensive but now he faces informed guys that will only pay the competitive price. So in equilibrium no one will teach the naive consumers.

Re: Sweden proposes ban on ride-sharing services that make profits

#33

Post by dschiptsov »

Have you ever seen Stockholm taxies - all these brand new Mercedes, BMW, you name it, with 300+sek for a minimum hail?

This overpriced, malinvested model cannot survive a competition with any more efficient and cheaper service. So these "investments" will be protected by the government for the sake of "the lesser evil" - an ugly status quo. Basically, the problem of UBER is that it exposes these "obese monopolies" protected by municipal govts.

Actually, it should be let to fail. Then a better service would be evolved.

Re: Sweden proposes ban on ride-sharing services that make profits

#34

Post by vasco »

zzleeper wrote: post #32
nothrabannosir wrote: post #19

Earlier quoted context omitted.

some private taxi drivers will prey on tourists by overpricing their services by 3x and waiting at airports. Since their rip-off prices are displayed right there in the window, it's fully legal. Tourists don't know the typical price of a taxi, and fresh off an airplane are not sure what the local currency rate is (Sweden isn't on the Euro), and hence get ripped off. Typically this should lead to more competition ther…

Not really. There is an econ paper that explains why (Xavier Gabaix's shrouded prices theory), but the idea is this: There are some consumers that are naive (tourists in this case) and you can exploit them (go to the airport, and wait until you get a naive guy). Now, suppose a competitor can find a way to educate consumers: you print pamphlets listing the true costs and hire someone to distribute them everywhere. Now…

Except you could just put a billboard right there in the airport exit saying how much an average trip to the city center costs for very little money.

Re: Sweden proposes ban on ride-sharing services that make profits

#35

Post by yamaneko »

zzleeper wrote: post #32
nothrabannosir wrote: post #19

Earlier quoted context omitted.

some private taxi drivers will prey on tourists by overpricing their services by 3x and waiting at airports. Since their rip-off prices are displayed right there in the window, it's fully legal. Tourists don't know the typical price of a taxi, and fresh off an airplane are not sure what the local currency rate is (Sweden isn't on the Euro), and hence get ripped off. Typically this should lead to more competition ther…

Not really. There is an econ paper that explains why (Xavier Gabaix's shrouded prices theory), but the idea is this: There are some consumers that are naive (tourists in this case) and you can exploit them (go to the airport, and wait until you get a naive guy). Now, suppose a competitor can find a way to educate consumers: you print pamphlets listing the true costs and hire someone to distribute them everywhere. Now…

Such a simple explanation, makes perfect sense.

Re: Sweden proposes ban on ride-sharing services that make profits

#36

Post by edblarney »

adamlett wrote: post #25
edblarney wrote: post #9

Earlier quoted context omitted.

"So, they want to encourage ride-sharing in the original meaning - carpooling. Not the "taxi company in disguise" meaning. Sounds fair enough to me." I'm not necessarily a fan of Uber, but this is ridiculous. If 'taxis' are legal in Sweden then there's no reason Uber should not be able to operate so long as they are obeying the laws . Ostensibly, this is about a specific issue - distance travelled and the lack of abi…

1) They are super, super aggressive when it comes to tax things. Cheating on taxes is worse than some major crimes! Which major crimes would that be? I'm a Dane, and this sounds ridiculous to me. 2) They are culturally anti-business and anti-entrepreneurial. That is way overstating it at best, and at worst just BS. True, we in the Nordic countries (or at least in Denmark), don't have quite the reverence for business…

My (half) brother is Danish.

The 'anti tax' statement is his, told to me, while I was in Denmark. The Danish tax authorities have to know specific things about your status - including if you carpool to work or not, in order to establish your tax status. They tax in a different way there - they establish your 'effective rate', rather than doing tons of deductions. Whether or not you carpool for example, affects your rate. He indicated to me that misrepresenting anything - even a minor issue to the tax authorities - is a fairly serious crime.

To contrast - the last time I met with him in Denmark, I went to dinner with some of his 'friends'. One of them had just gotten out of a 'halfway house' for murder. He spent almost no time in actual jail.

Anecdotal, but legitimate nevertheless.

The 'anti business' attitude in Scandinavian countries is (or was) palpable, esp. among anyone over say 45. It's a much more difficult thing to illustrate, but go ahead and talk to an older Swede. You'll see what I mean.

Re: Sweden proposes ban on ride-sharing services that make profits

#38

Post by pricechild »

aedron wrote: post #18
shocks wrote: post #4

Stockholm is full of 'fake' taxis that take you longer routes and charge you more money. I'd much rather use Uber.

I would use any taxi company that charged me the price up front, paid through the app, calculated based on distance from source to destination and some heuristics about time-of-day, time-of-year, etc. The driver would be incentivized to get you to your destination quickly and there wouldn't be that awkward tension about whether the guy is taking the best route, driving too slow or whatever. Even if they occasionally…

That's a common offering here in my home city by any company. You can ring them up and agree a price.

On the technology side... Gett.com seem to be offering an identical solution to Uber with the bonus of fixed price service within certain bounds. Looking at trips within a few miles of the city centre it'll offer a fixed price or "by the meter". Anything too far out however and it'll offer only "by the meter". Still, worth a punt?

EDIT: Bit more of a review...

I've contacted their support in the past and it's been pants. A couple of weeks for a human reply.

I also don't like how you have to decide the tip before the trip ends. Once you're dropped off, 'bing' the money is gone. I guess this is a culture difference but I prefer to decide to tip once I've decided I'm happy with the service. it's not a given.

Re: Sweden proposes ban on ride-sharing services that make profits

#40

Post by wildmusings »

daenney wrote: post #12
edblarney wrote: post #9

Earlier quoted context omitted.

"So, they want to encourage ride-sharing in the original meaning - carpooling. Not the "taxi company in disguise" meaning. Sounds fair enough to me." I'm not necessarily a fan of Uber, but this is ridiculous. If 'taxis' are legal in Sweden then there's no reason Uber should not be able to operate so long as they are obeying the laws . Ostensibly, this is about a specific issue - distance travelled and the lack of abi…

> "So, they want to encourage ride-sharing in the original meaning - carpooling. Not the "taxi company in disguise" meaning. Sounds fair enough to me." > I'm not necessarily a fan of Uber, but this is ridiculous. > If 'taxis' are legal in Sweden then there's no reason Uber should not be able to operate so long as they are obeying the laws. I think you've misunderstood what was said in the original article. This doesn…

You are mistaken. UberPOP is already not operational in Sweden. UberX is what's being targeted.
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