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by jpatokal 3066 days ago
C'mon. Getting a taxi permit in Finland requires taking a bunch of mandatory courses on highly Uber-relevant topics like "how to use your taxi meter" (185 EUR) and "local navigation without a GPS" (260 EUR), then passing an exam with questions like "from memory, name all roads between random location X and random location Y", meaning you're looking at a bare minimum of 700 EUR and several weeks of full-time study to get licensed: https://taksikoulu.net/kurssit/#hinnasto

And Uber was way (as in, 30-50%) cheaper than taxis while it operated in Helsinki.

3 comments

Uber is cheaper because Uber's investors subsidize each ride. Don't let this fool you. Uber will get a lot more expensive when those investors want to see returns.
Uber's prices will remain competitive so long as there is healthy competition. If Uber is able to establish a quasi-monopoly in a particular market, then prices will rise.
You’re confusing taxi driver’s permit (which requires exams, not courses) with a taxi licence/permit. Uber drivers didn’t have either and the latter is where the law is very strict. Licenced taxis pay much higher insurance and the cars have to be inspected more often, meaning the costs of a legitimate taxi business are much higher than unlicensed Uber drivers.
> Licenced taxis pay much higher insurance and the cars have to be inspected more often

I have yet to visit a city where these inspections and insurance premiums seem a reasonable cost-benefit trade-off for the median rider. The long-term competition from ridesharing, and lack of prevalent organized rider (versus driver) opposition to it, corroborates that observation.

Such permitting is a crony capitalist scheme to protect the existing taxi drivers at the cost of those wishing to enter into or compete with the industry.

See also cosmetology licenses in many states in the US, which are just dumbest thing.