Posted on 12/12/2014 5:28:12 AM PST by MichCapCon
A Michigan House Committee just approved House Bill 5951 introduced by Rep. Tim Kelly, R-Saginaw Township, which would create a statewide regulatory framework for transportation network companies, such as Uber and Lyft. State-based regulations can be worse than locally derived ones, but these proposed rules are reasonable and would make Michigan a leader in innovative transportation services. But how will these services benefit Michiganders?
In a recently published report by the Mercatus Center at George Mason University, scholars Stewart Dompe and Adam C. Smith make the case that customers with lower levels of income will likely benefit most from the expansion of ride-sharing services.
They explain that companies like Uber and Lyft are primarily competing with taxi cab services in urban communities. Taxi regulations artificially limit the supply of cars for hire, driving up the price and pushing this service out of reach for low-income residents. By increasing the competition for customers, ride-sharing companies will force taxi cab companies to expand their customer base – in other words, lower prices and serve more low-income consumers.
For these reasons, allowing companies like Uber and Lyft to operate in Michigan would primarily benefit lower income residents. Yes, people who can afford taxis will gain from reduced rates as a result of increased competition, but those who cannot currently afford any cars for hire will gain the most. For the first time, these consumers will have the opportunity to capture the benefits of private transportation services that currently only their wealthier neighbors could afford.
On these theoretical grounds the case seems strong. But the empirical case is solid, too. A 2006 study by Adrian T. Moore and Ted Balaker found that the empirical evidence overwhelmingly supports reducing taxi regulations. Further, a recent survey of 43 leading economists (from a wide range of political perspectives) found unanimous agreement that increased competition from ride-sharing services would benefit consumer welfare. (Getting any group of economists to all agree on something is quite remarkable!)
Both the theoretical and empirical evidence suggests that expanding ride-sharing services in Michigan would be on net beneficial, especially for residents with lower incomes. Michigan policymakers should ignore the predictable complaints from the taxi cab companies who fear increased competition, and roll out the welcome mat for new innovations that will drive down costs and extend the benefits of car services to more Michiganders.
Dude...you need to be a bit more ^specific^ when using the word “consumers” in a Michigan story.
The normal rate-payer does not want anything to benefit CONSUMERS (a still-used nomenclature of the local power industry).
It may be a wonderful thing, but I’m not setting foot in an Uber taxi.
You don’t know who any of these people are. And the company doesn’t have a physical address in every city either they operate in either.
LOL
A blog post appropriately placed in Bloggers. An opinion that ignores all the practical concerns of the ‘Uber-nuts’, to coin a term.
Anyone with a cursory knowledge of municipally-regulated/licensed taxi services knows that most need some sort of reform (the regulations). But engaging an emotional argument to justify undermining those regulations by illegally operating, as Uber has done in many cities, smacks of either an agenda or a vested interest.
I’m not even going to touch on the legal liability issues, except to state that if a person doesn’t value their safety, health or financial security, go ahead and save a few bucks by taking Uber/Lyft rides and ‘feel good’ about the fact that all you’re doing is enriching Uber investors (who care not about the drivers).
http://uberpeople.net/forums/Complaints/
We saw a local taxi driver sentenced for the rape of a fare a few months back.
You’re living in a fantasy world if you think a “regulated” taxi is any safer than Uber.
Cab companies have not been paying protection money to government for seven decades for nothing. Somehow, someway, this will be crushed.
They are trying to kick them out of Orlando by insisting that they charge the same as regular taxi’s. Don’t know how they think they can do that (the government) but they are trying.
I don’t see it happening. The legislature has already passed laws that open the state to Uber. In Detroit there are already 2 privately owned bus companies operating in competition with the city bus system.
The Detroit bus company and Dan Gilbert’s private shuttle buses for his employees which he is expanding into a cheap pay service.
That’s an emotional argument.
As ridiculous as the blog posting.
Metaphorically putting words in my mouth, you are, as I never said a taxi was ‘safer’. In fact, I stated they ‘need reform’. Perhaps you grabbed the decaf by mistake this morning.
If you’re defending Uber, since you seem to be attacking my position, go ahead and hitch an Uber ride and ‘feel good’ about it...Russian Roulette, it is. Just don’t come whining here when it’s determined the offshore-based insurance they claim is shown to be not worth the paper its written on to protect passengers or, for that matter, those otherwise endangered by these inexperienced drivers being fed a line of bull by a corporation only interested in feeding off their labor...
Furthermore, look at what a person agrees to by default simply by accepting a ride via the Uber App
https://www.uber.com/legal/usa/terms
A list of quotes thereof
http://www.whosdrivingyou.org/uploads/2/5/1/4/25145532/terms-and-conditions.pdf
and my favorite quote:
“You may be exposed to transportation that is potentially dangerous, offensive, harmful to minors, unsafe or otherwise objectionable, and…you use the application and the service at your own risk.”
Don’t care.
We agree. Go figure.
A few facts: the drivers for Uber undergo a background check, must show evidence of insurance, must have their vehicles inspected.
Above that I am sure Uber has another layer of insurance.
And the drivers are continuously rated by their (willing) ride-share customers.
Nor would you know who the taxi driver is. Typically the taxi drivers I run into are Middle Eastern and barely speak English. On the other hands, many of the Uber drivers are American, have clean cars and speak perfect English. They even have bottled water.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.