Quote:
Originally Posted by SFUVancouver
The requirement that ride-hailing cannot undercut taxi fares is really quite frustrating to me, especially considering the exorbitant cost of taxis is largely driven by the broken cartel economics of taxi medallions, but the convenience of ride-hailing and far better customer experience is still going to be welcome.
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Taxis really aren't that expensive based on the rules they have to follow. The companies are making money, but they aren't like these fat cat oligopolies overcharging people (ie: Robellus).
The problems with the current system are:
1. Lack of cars when and where you need them
2. Lack of driver accountability/customer service
3. Stone age rules around territories, where cabs can pick up, drop off, etc.
Ride hailing deals with all 3 of those.
The reason that Uber is cheaper in some cities is because the company and its investors are massively subsidizing the rides, and the drivers are being paid shit, even below minimum wage when their costs are factored in. The first is unsustainable, the second is unwelcome.