On May 15, the Georgia Supreme Court unanimously rejected an appeal from Atlanta taxi drivers seeking recovery funds from the state for “deregulatory takings.” The taxi cartel had argued that the deregulation of ride-sharing services such as Uber and Lyft had decreased the value of taxi medallions to such an extent that the taxi industry had become entitled to compensation by the state.
The court not only wholly rejected the argument, but also declared that taxi operators have no right to an “unalterable monopoly.” Simply put, purchasing the medallions from a government agency does not entitle the buyer to lost market value caused by new entrants. Taxi operators can compete and innovate, but they cannot fall back on the support of the state. In coming to this decision, the court relied on similar decisions in Chicago and Minneapolis, where other states dealt with similar arguments.
Read more in RealClearPolicy
This article is coauthored with Daniel Pryor.
Writing for The Guardian, Evgeny Morozov repeats a number of well-worn, but misguided, objections to Uber’s continued growth. He predicts that Uber will spell doom for consumers and drivers. It will drive its competitors out of business in order to charge monopoly prices to its customers and squeeze “even more cash or productivity out of Uber drivers.” This is all thanks to the “rich venture capitalists” and tech-giants whose tax-avoidance supposedly enables them to fund Uber’s expansion. With their backing, the company can “afford to burn billions in order to knock out any competitors, be they old-school taxi companies or startups.”
Morozov and other who make the same anti-Uber argument are mistaken on a number of levels. Uber and other ridesharing companies benefit consumers and drivers, both now and in the long run. Uber will continue to face competition and it will not monopolize the for-hire vehicle transport industry, unlike its government-protected taxi predecessors did.
Read the rest on Forbes, here.
Advocate Frederick Roeder was quoted in Berliner Zeitung (Berlin’s largest newspaper) discussing taxi regulation.
Read the full article (in German) here.