Quote:
Originally Posted by Bill Bumface
Why is there a limited number of plates?
I can see regulation for handicap transportation and sub-markets that may not be self supporting, but otherwise:
1) Have car that meets yearly inspection requirements
2) Have license that requires X regular certifications
3) Have insurance policy necessary to carry people around
Why would the city cap how many cabs there are? If you can't make money at it, you'll go out of business.
If it's tough to get fares, maybe you'll actually work at 2am on Fridays and Saturdays.
Why aren't there coffee shop licenses limiting the number of Tim Horton's or Starbucks locations? Why aren't there licenses limiting how many FedEx and UPS trucks there are?
It's ridiculous. Besides the handicap angle, I see zero reason for any requirements on the number of cabs nor a reason to regulate the price.
|
I believe the rationale is that because the taxi industry is heavily regulated, meeting those regulations require a significant expense to the taxi owners. At the same time, regulated pricing means that there is a limit to the revenue that each taxi can generate.
So, when the city implements the regulations, the taxi industry pushes back and says, the only way we can operate safely and stay in business is if we know there will be enough passengers available for each cab to generate the revenue needed to survive.
Both sides give in and the regulations are set and the number of taxi licenses is set. The city gets a safe and reliable taxi industry and the taxi drivers can meet all the regulations while still making a decent living.
Then, decades pass and the city continues to sprawl further away from the centre, and the number of licenses doesn't grow proportionally to the population of the city, and we end up in the situation we're at now. Meanwhile, the people who drew up the original bylaw are likely long retired.
The sins of the father are to be laid upon the children.