Friday, February 13, 2015

A Note to Taxis, Stop Suing and Start Innovating

Last blog, I ridiculed  Christopher Davis, CEO of Professional Chauffeur Transportation Services for their suit against Miami-Dade, Uber and Lyft.  I found Mr. Davis pathetic in his attempts to claim that he had to stop these renegade services for the good of mankind.  Well, as pathetic as Mr. Davis is, I felt sorry for him. So, I decided to give him some advice.
First, stop.  Please, I'm begging you, stop.  Stop pushing for regulation.  Push for deregulation.  Uber and Lyft have created an advantage by calling themselves "ride sharing" and not taxis.  I don't understand the difference either.  Instead of pushing to regulate, push to deregulate. Taxis are required to charge pre-approved prices, Uber can be creative and raise and lower prices depending on demand. With the competition coming from ride-sharing, there is no need for regulation.  Get rid of it and compete.
Copy the surge pricing model.  There's no reason that there shouldn't be peak and off peak pricing.  Hotels, airlines, even baseball games and broadway musicals do it, why not taxis. Be creative.  Maybe allow people to bid on taxi fares. And please, Mr. Davis, feel free to market yourself.  You claim your drivers are more experienced.  Market it.  Explain the advantages.And, for goodness sake, get a damn app already.
Regulation is reasonable when there is no competition.  When competition exists, strip away the facade and let price and innovation win.  Please Mr. Davis, fire your lawyers and hire some app developers.  That will show me that you actually care about the public good.

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