[tomp]

I see public transport as a public service, like an utility, and I think it should be regulated.

The problem with markets is that they optimize only on profit/price. However, there are things that I (and I believe the population at large) value that cannot be optimized using simple market dynamics with no regulation. For example, I expect there to be taxis on the road, even if the demand is very low. Another is, as I mentioned previously and you agree, insurance. Yet another is cooperation - it is beneficial for a city to mandate that there is only one app/protocol for hailing taxis, whereas for private companies it makes sense to each create its own walled garden and prevent new competition from entering.

Of course, all of the above could be created by carefully-constructed regulation (or appropriate economic incentives), but simply limiting the supply of taxis along with a small number of rules is the easiest way to do it. Ideally, we'll get better regulation; while Uber will probably make us reach that goal faster, I hope the end result is not like Uber.

I'm divided on surge pricing, but I definitely see no reason for surge pricing on "predictable" events, such as Friday night. Even for "unpredictable" events, such as rain or even a hockey game, I think it would be better if people would be able to hail taxis on the street, or on a first-come-first-serve basis. On the other hand, I realize that surge pricing can increase supply, but the very existence of surge pricing can also lead to market manipulation - suppliers waiting until surge pricing is in effect, so that they get a higher fare. In effect, (if I understand correctly) since surge pricing is not momentary (when it starts, it doesn't end until sometime later), Uber is creating a free market distortion itself.

[jkaunisv1]

Cabs are not public transport. They're private. I'm paying the cab driver directly to take me from point A to point B. It's not a city bus or a subway.

Your argument about a unified protocol is weird. It's not like there's a central place I can call to get a cab. There are many cab companies with different numbers. There is very little difference to me between having to look up a cab number and using an app to call a cab. And how is it even beneficial to have one app/protocol for hailing a cab? Beneficial to who? I would rather choose the service I prefer over time based on my experience with them and my preferences. The city doesn't need to dictate that for me.

For the record, I strongly dislike Uber's business practices. I think there should be regulation for stuff like background checks of drivers, insurance, etc. Just as the food industry has regulations for health and safety.

But the taxi business overall has no reason to be regulated in terms of limiting cabs on the road or how they're accessed, just as there is no regulation on how many restaurants there can be in town, when they're open or whether you can make a reservation or not.

[lkbm]

> I'm divided on surge pricing, but I definitely see no reason for surge pricing on "predictable" events, such as Friday night. Even for "unpredictable" events, such as rain or even a hockey game, I think it would be better if people would be able to hail taxis on the street, or on a first-come-first-serve basis. On the other hand, I realize that surge pricing can increase supply, but the very existence of surge pricing can also lead to market manipulation - suppliers waiting until surge pricing is in effect, so that they get a higher fare. In effect, (if I understand correctly) since surge pricing is not momentary (when it starts, it doesn't end until sometime later), Uber is creating a free market distortion itself.

My biggest concern with surge pricing is the apparent lack of transparency. According to my friends who use Uber, the app will give the estimated cost that doesn't account for (at least not fully) the surge pricing--to the extent of an estimate $15 fare actually being over $90.

If people know before they make the request/get in the car, there are still issues of what they thought was a viable option for getting home suddenly turns out not to be, but without surge pricing to boost supply, it may well not be anyway in such situations, so, like you, I'm divided.

[baddox]

> However, there are things that I (and I believe the population at large) value that cannot be optimized using simple market dynamics with no regulation. For example, I expect there to be taxis on the road, even if the demand is very low.

Can you explain why these things that the population values at large would not be profitable? Obviously that can be true for public goods, but individual or small group point-to-point ground transportation (taxis) is not a public good. The fact that you expect things that are extremely inefficient is not a very good reason.

[tomp]

Just because it's fulfilled by private companies does not mean it isn't a public good. I believe that transport, especially inter-city transport (which has many more externalities than intra-city transport - e.g. traffic, pollution, mobility) should be managed as a public service. Many cities agree.

Simply said, the fact that I can always get a taxi makes it more viable for me to not own a car. Less cars in a city mean more space and less traffic, both of which are desirable for the entire population of the city, and both of which have significantly more positive payoff than the cost of some minimum amount of taxis on the street at all times. Therefore, in my eyes, it makes sense to enforce such minimum via regulation, even though it is not profitable (and will manifest itself in an increased fare for other, more profitable rides).