Sure, Medallion laws had problems, and got Regulatory Captured in some cities to also become terrible Trusts controlling prices that needed busting. But the answer to "fix the Regulation" isn't always "break the Regulation", and the Regulation had a lot of good intent of having public accessible information about drivers and that data not just owned by a single company and locked in their opaque algorithms. It might have been nicer to fix the Regulatory Capture and Bust the Trusts.
You just landed at the airport and need a cab. You fax your FOIA requests for each of the hundred cab companies in the area, which they're required to provide within 20 business days. Your return flight is in 3 days and it would be nice to leave the airport before then.
> Sure Uber/Lyft boil that into a "friendly" 5-star UI, but do you have any idea what data contributed to that star rating? Do you always trust the algorithms that compute them from a bucket of metrics you can't directly request?
So compete with them instead of banning them. Fund an open source ride hailing app with open data. Don't require anyone to use it. If it's better, they will. If it's not better, why should they be forced to?
If you just landed at the airport, you rely on police enforcement keeping bad actors from having medallions. The medallion itself is the primary "this person is a reputable cab driver". That's also entirely why the Regulatory Capture in some cities was so effective in controlling supply of medallions, because it was city police enforced.
Many cities required taxis to have their medallion number painted on the outside, and there were phone numbers you could quickly call (in the days of payphones even) to get quick information about a medallion or to report a complaint/problem with one.
Today a few cities have updated that external paint requirement (and inside the car medallion papers) to include QR codes for even quicker lookup on modern phones or to even use an app to do nice things like pay for the Taxi without needing to broker/negotiate it. Those kind of technological improvements have kind of gotten lost in the wash of the speed of which Uber/Lyft moved fast and broke things, but were always possible.
> So compete with them instead of banning them. Fund an open source ride hailing app with open data. Don't require anyone to use it. If it's better, they will. If it's not better, why should they be forced to?
The history of taxi companies say that they are only as open as they are forced to be. I never said anything about banning Uber/Lyft. Competition is not the problem; destroying public safety regulations in the name of competition is the problem. I said that Uber/Lyft should have been required to do the same or similar paperwork that medallions represent, that both of their data should be open under the previously existing laws, as a public good. Break the artificial scarcity, sure, give Uber/Lyft a license to "print medallions" if that breaks existing Trusts. But get that data open and available to the public (and enforceable by the public's law enforcement). Neither would want to do that because their rating systems are secret sauce and "competitive advantage", they would need to be coerced by regulations. That's what regulations are for, the public good that competition doesn't care about/can't care about/needs to keep "secret sauce" for advantages.
I certainly didn't love their ruthless business practices, but let's not delude ourselves and admit that Uber or Lyft wouldn't exist if they didn't break the laws around taxi medallions.
Sometimes laws do more harm than good (by limiting supply and slowing innovation) and it requires creatively skirting regulations.
Things were always possible to improve the taxi industry. Smartphones had been around a few years. But it would've taken the industry 20 years to implement it correctly. In the same way that rampant music and movie piracy in the early 2000s hastened the development of iTunes and Netflix's subscription model way of doing business.
Uber shows the driver's name, their photo, and has a process for flagging drivers. Public safety is important to their business. As someone who's driven an Uber and Lyft and been through their process, I've seen it firsthand.
It's not like "medallions" worked - I remember driving in multiple taxis in pre 2010 days where the photo DID NOT MATCH UP to the driver. My high school physics teacher who grew up in Brooklyn in the late 1970s told stories about how he learned how to drive by illegally working and driving taxis around as a 15 year old.
Right now, we're just going through the same thing with AI again, and Silicon Valley is applying it's ethos of the past few decades.
There are reasons why in various industries, China is "winning the race", so to speak.
Regulations exist, but sometimes people who creatively ignore the "regulations" can win the tide of the public. It's one of America's best (and incredibly divisive) cultural capabilities.
Well that's not going to work. You now have people from outside the jurisdiction having a government they didn't elect cast in the role of their protectors. Instead what happens is the local government protects the incumbents, which is what we've seen in practice.
> Many cities required taxis to have their medallion number painted on the outside, and there were phone numbers you could quickly call (in the days of payphones even) to get quick information about a medallion or to report a complaint/problem with one.
As opposed to the license plates already on all cars?
> The history of taxi companies say that they are only as open as they are forced to be.
People keep trying to regard Uber as a taxi company. They keep claiming to be an app, because... they are. So replace the app with an open source one. Create an independent non-profit to handle payments and maintain a server to hold the driver ratings and take a small cut of the payments to cover its costs. Operate it as a live auction where drivers list how much they'll charge per mile and riders pick a driver based on their rating and price. Publish all the data.
If you do it well, people will use it voluntarily. If you do it poorly, you haven't demonstrated enough competence to be trusted making regulations that people would have to follow even if they're dumb.
> Competition is not the problem; destroying public safety regulations in the name of competition is the problem.
The problem is that incumbents call the things they use to destroy competition "public safety regulations".
> Neither would want to do that because their rating systems are secret sauce and "competitive advantage", they would need to be coerced by regulations.
Not when you can "coerce" them through competition. If people like the ratings system which is more open or the one that extracts lower margins and the app is otherwise fungible with theirs, they don't even exist unless they can be better than the competing system you created to do better, which implies that you failed to actually do better and then they're supposed to win. Which in turn applies pressure on the public system to do better itself, instead of getting captured, because if it gets captured then it becomes uncompetitive and actually has competition.
