Shocking: Socialist/Bureaucratic War on Uber and Lyft

Shocking: Socialist/Bureaucratic War on Uber and Lyft

Craig Huey Economics, Free Markets, Government 2 Comments

Over the last 25 years, I’ve used a lot of taxis.

Never knowing about the driver (some horrible!), the car (some were a nightmare), and if it’s the long route or the short route (at times never).

And, I’ve also had concerns for my safety … not trusting my driver at all.

 

Now everyone has a choice—Uber/Lyft.

A new free market innovation outside of the politicians’ and bureaucrats’ control.

But socialists want bureaucrats to control everything.

And taxis want politicians to prohibit Uber and Lyft.

So city after city is trying to stop the free market and control it (socialism). And it’s probably happening in your city.

Last week, Shelly and I used both an old-fashioned taxi and a private alternative in New York City.

In Los Angeles, only Uber or Lyft make sense for cost, convenience, and safety.

Let me explain.

Instead of waiting for a taxi, I could signal an Uber ride with my smartphone app.

Instead of worrying about my safety or the security of the drive, Uber provides complete information about the drivers ahead of time.

And instead of worrying about where the taxi is, I see on my app where and how far the car is from my location.

Every year Uber has been in operation, traffic accidents and fatalities in general have actually decreased!

Why has this happened? Shouldn’t a heavier regulatory presence make all the difference?

Rather than responding to public pressure from the government, Uber and its drivers respond to the direct and more powerful directions of the free market–customers themselves.

If they do not like a driver, or do not like the service, they can inform other potential Uber riders and stay away from those drivers.

And yet …

Government bureaucrats and politicians want to ban Uber, Lyft, and other sharing economy apps.

Why? Because they want to expand, control, and find new revenue sources.

What do you think? Email me at craig@craighuey.com.

Comments 2

  1. My friend, who is becoming more and more disabled, depends on Uber for her transportation to and from doctors offices. She is very happy they are available when she needs them. I have been keeping an eye on this situation because, due to health issues, I can no longer drive. So far, I have been fortunate to have my husband available to transport me to and from appointments, etc. But, the time may come when I might need Uber for help. I have been relieved to know they are there and will be available when I need them. This news about possible restrictions is very discouraging!

  2. Financial implications: many financial institutions in major cities are heavily invested in taxi medallion loans. The competition from Uber and Lyft is causing the market value of taxi medallions to drop. They have lost about half their value over the past year. The lenders have to increase their reserves because the underlying collateral isn’t worth the loan balances. A couple New York & Chicago banks/credit unions are facing increased scrutiny from their regulators. If medallion values continue to drop, some institutions could fail. This only affects a small number of credit unions that I am aware of. Unfortunately, it could have a negative ripple effect because some credit unions buy participation interests from the major medallion lenders.

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