Uber is cheaper because Uber's investors subsidize each ride. Don't let this fool you. Uber will get a lot more expensive when those investors want to see returns.
Re:Taxi deregulation coming to Finland
by Reason077 on Thursday February 01, 2018 @07:23AM
(#16281340)
Uber's prices will remain competitive so long as there is healthy competition. If Uber is able to establish a quasi-monopoly in a particular market, then prices will rise.
You’re confusing taxi driver’s permit (which requires exams, not courses) with a taxi licence/permit. Uber drivers didn’t have either and the latter is where the law is very strict. Licenced taxis pay much higher insurance and the cars have to be inspected more often, meaning the costs of a legitimate taxi business are much higher than unlicensed Uber drivers.
Re:Taxi deregulation coming to Finland
by JumpCrisscross on Thursday February 01, 2018 @07:59AM
(#16281523)
> Licenced taxis pay much higher insurance and the cars have to be inspected more often
I have yet to visit a city where these inspections and insurance premiums seem a reasonable cost-benefit trade-off for the median rider. The long-term competition from ridesharing, and lack of prevalent organized rider (versus driver) opposition to it, corroborates that observation.
Re:Taxi deregulation coming to Finland
by Cyberdog on Thursday February 01, 2018 @10:58AM
(#16282785)
Such permitting is a crony capitalist scheme to protect the existing taxi drivers at the cost of those wishing to enter into or compete with the industry.
See also cosmetology licenses in many states in the US, which are just dumbest thing.
And Uber was way (as in, 30-50%) cheaper than taxis while it operated in Helsinki.