Car Service Uber Faces Regulatory Challenge in Dallas

I recently wrote about how the startup Uber disrupts the taxi business.

Since then I have found this article showing how Yellow Cab is trying to make life difficult for Uber in Dallas. It exposes the donations from Brewley, the president of Yellow Cab, to Dallas city council members over the years.

What Dallas is trying to do is impose a number of regulations that would hobble car services like Uber, that use smartphone apps to hail rides. The restrictions include things like minimum times for drivers to pick up passengers and set minimum fares.

Think about this: with Uber you can request a ride and get that ride in minutes, possibly seconds, depending on where the car currently is, and the limo services require the car to wait 30 minutes? Then it sets the minimum fare to be equivalent with limo prices, making Uber uncompetitive.

This borders on the ridiculous. If a company has to protect its viability by slowing down competitors by regulation, that company is already dead.

Read Ayn Rand’s Atlas Shrugged to see what such regulation leads to.


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