Virginia Is for Cartels

Do you want there to be competition and diversity in limousine/ride-sharing/taxicab services? Do you live in Virginia? If the answer to both questions is “yes,” then it sucks to be you.

Of course, it shouldn’t suck to be you, but this is what happens when government is too large and too powerful, and when it uses its power to cater to the interests of cartels at the expense of consumers. Key passage:

Rather than hinder the growth of innovative livery companies that are taking advantage of new technology, lawmakers in Virginia and elsewhere across the country should consider repealing current taxi regulations that restrict innovation, strengthen established market players, and stifle competition.

Uber and Lyft are popular for a reason: they provide a reliable and desired service at prices customers have indicated that they are willing to pay. In a fair and level playing field with fewer regulations, their competitors would have to rely on improving their own services rather than on market-distorting legislation.

Quite so. More here, and I certainly agree that politicians dislike Uber and Lyft in part because “[a]s currently constituted, Uber and Lyft provide insufficient opportunities for graft.”

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