The taxi industry operates with impunity, and managed to get ownership of new Bus Rapid Transit systems in Johannesburg and Pretoria (they'd have shot bus drivers if they didn't get a stake).
I've been threatened personally with a weapon (a hammer, not a gun, fortunately) by a taxi driver who felt I didn't move out of his way fast enough. Not coincidentally, it was around that time that my libertarian leanings began to wane.
Isn't the obvious solution to this problem the enforcement of existing laws against threats and violence?
Or conversely, if the government is so weak that it can't stop the taxi cartels from fighting bloody battles, surely it's also too weak to enforce cab licensing laws.
However, deregulating the industry made the problem far worse than it could have been. Our law enforcement is not entirely ineffectual, and a permit system would have provided more control than a free-for-all, by moderating supply. Buses remained more tighly controlled and I don't see bus warfare (there is an upward trend in accidents involving buses though I think that has more to do with poorly skilled drivers than profit-seeking).
This is certainly the case with their new "Uber X" service as well that got into trouble in DC - the only difference is that they dispatch hybrids from their partners vs. towncars / SUVs.
> βIt happens to be D.C. law," Linton reiterated about the situation with Uber. "D.C. law prescribes that limousines must enter into an advance contract with the passenger.β
http://www.tbd.com/blogs/tbd-on-foot/2012/01/the-kojo-show-b...