Government almost always forwards the interests of established business over the upstart business and the customer.
Ostensibly, regulation of taxi services is for the safety of the public and to insure minimum levels of service. In actuality it is to prevent competition in service, price and innovation, all to the benefit of entrenched taxi service providers.
I remember the cabs in NYC years ago. The vehicles were poorly maintained and dirty. The driver often spent his time on the cell phone talking loudly in a language I could not understand, as if he was on his own time instead of in my paid service..
In Miami the trip from the airport to Miami Beach was fixed fare. Once the shocks on the cab were bad and it bounced up and down so severely I thought we would drive into the bay. Another time I could smell exhaust in the car. I thought the driver might pass out at any moment. Because the fare was fixed the drivers drove as fast as they could. At night they would turn off the dashboard lights so the passengers could not guess how fast they were flying. Nothing like speeding on a causeway over water in an under-maintained car while the driver is in deep conversation with someone miles away.
Then I tried an Uber car in Miami. The car was a very new Toyota small SUV. The driver had provided water and candy for passengers. He asked about the temperature to set, whether there should be music or not and at what volume. The trip cost slightly less than an equal taxi trip. I was hooked.
Why is Uber so much better? Every major metropolitan area regulates taxis. They limit who can offer the service; hence it is a government enforced monopoly. They act as monopolies always act Either they raise prices (or not if prohibited by regulation) or cut on service and capital investment, or both. The cabs are crappy The drivers are rude and unconcerned about your experience,
The politicians gain the fees and support of taxi fleet owners. The fleet owners gain freedom from competition and the need to manage and provide a good customer experience. The drivers gain almost nothing. Hired hands who take their little share out of the arrangement by freedom from providing customer service. After all, there will be fares no matter how surly or preoccupied the drivers are. The customer pays for the politician’s and the fleet owner’s benefits. He pays in crappy cabs, higher prices, lousy customer service.
It’s repeated everywhere. The most regulated enterprises provide the poorest customer service. Think of what your experience at the doctor’s office or hospital is like today