It would be interesting to look at the origins of taxi regulation. It was a solution to:
- Unpredictable pricing by taxis
- Criminals posing as taxis
The franchise fee of ~170k is a payment for the government’s service of solving these problems.
Software + company brand has solved these things. Pricing is agreed upon prior to pick-up. Based on my taxi/Uber experience, a company’s self interest in protecting their brand seems to be more effective than regulation in ensuring safety and a good user experience (especially cleanliness of the car and politeness of the driver).
I don’t understand why there needs to be regulation and tax beyond that of a normal business for Uber/Grabcar (SEC registration and business tax) and their drivers (LTO registration and income tax).
I wanted to write something along these lines but got busy and ended up with this (the intended intro) https://medium.com/the-real-edition/manila-cab-driver-on-drugs-b7e0265639