Regulation Stifles Competition

I’ve always been of the opinion that often the primary outcome of government regulation is to stifle competition. Here’s another case that proves the point, brought to us by TechDirt.

Some new taxi cab services sprung up awhile back in Tampa, Florida. They use electric vehicles and don’t charge for the rides. The cabs are wrapped in ads and they only accept tips. The transportation commission licenses (and limits) vehicles for hire but there rides were free so they escaped regulation. Naturally the taxi drivers for hire didn’t like the competition.

But that’s all changed since the transportation commission recently ruled that the free cabs are actually for hire. So they need licenses. Except, but the way, there aren’t any available. So a new, seemingly well liked, transportation system has been shut down due to artificial limits set by government regulation. Luckily, Hillsborough county seems to be alone with it’s roots in the last century and other nearby counties are accepting the electric cabs.

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