Although I don't like Uber because they are bypassing certain regulations which protect the drivers and passengers, the taxi industry is screwed up. A lot of the blame is because of the limit on taxi plates and the other problem is that the current dispatch model doesn't work while Uber's does. Here's an example of what is happening at peak times.
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“A lot of the drivers don’t like to book in to those areas when it’s busy,” the Checker driver says, because they’re just going to end up chasing down passengers that have left in another vehicle when they could just drive around and pick up customers that hail cabs on the street rather than by using the dispatch system. That, of course, creates a negative feedback loop – the customers get in a different cab because they’ve waited too long for the one they called to arrive, and drivers stop checking into the dispatch system because the fares they get sent to pick up are long since gone. “It’s partially brought on by the customers, partially brought on by the drivers and partially brought on by the companies, and nobody wants to take the blame,” he says.
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http://albertaventure.com/2014/04/fare-trade/