Tuesday 27 May 2008

Down with Big Taxi

The big two taxi cab companies in town are at it again: trying to crush any competition to their duopoly. Competition is what makes our economy go 'round. It's a good thing. Open up the damn market and let it regulate itself. If some drivers want to start a taxi co-op, let 'em. It can only lead to improved service for the public, which is the bottom line after all.

Last time we saw Big Taxi get its panties in a knot, it was to protest an airport shuttle proposal. Imagine that -- an airport shuttle in a city that takes pride in being a transportation hub. What an outrageous idea. People like to throw around the term "World Class" in Winnipeg. Something as simple as an airport shuttle would do a lot more towards making Winnipeg a World Class city than any interpretive centre for a non-existent fort.

There is no good reason for this over-regulation of the industry. In fact, ditch the Taxi Cab Board completely and replace it with some basic regulations (minimum standards for cabs, etc.) and let the market work. It will be ok. Trust me.

Recommended reading: This column from Peter Holle.

8 comments:

Unapologetic Ex-Winnipegger said...

The only problem with the airport shuttle was that it was to be owned by the airport. That's not the same as letting the markets work....

cherenkov said...

It was to be owned by Avion Services, which runs some of the other services at the airport. I don't see any problem with that. An shuttle service is better than no shuttle service. I've used shuttles in other cites and find them very useful. The point is that barriers to entry in this market is so onerous that even Avion couldn't make it happen, and the people get crappy over-priced service as a result.

Anonymous said...

Like Cherenkov said, let the market do it's thing. Shuttles are great in cities to get from the airport to downtown hotels
( Toronto and Montreal come to mind )

Anonymous said...

Big Taxi has quite the political power over a few councilers and MLA's due to the ethnic makeup of the biz.

cherenkov said...
This comment has been removed by the author.
cherenkov said...

Care to elaborate on that last comment, anon? I don't think ethnicity has anything to do with it. There's over-regulation in other areas as well.

Unapologetic Ex-Winnipegger said...

An airport rep admitted on Marty Gold's show that Avion would be owned by the WAA. If the airport were to have a shuttle, it should be run by an agency that operates at arm's length away from the WAA. The problem with the airport running their own shuttle is that there is subsequently a built-in financial incentive for the Airport to favour the shuttle over the taxi service.

I'm all for free markets, but "free" means making sure that traveller transport is bereft of any sort of gamesmanship. That goes for both the taxis and shuttles.

This said, public regulation of taxis should be concerned only with the safety of passengers, not the number of licenses issued. Anyone should be free to enter the market provided they have the property safety record and their vehicles are fit for passenger transport.

Unapologetic Ex-Winnipegger said...

Errr proper - not property. Real estate on the brain. ;)

 
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