Put yourself in their shoes — or seats — for a few minutes. What if the District government came into every retail store and forced the owners to purchase a specific type of cash register? Surely business owners in the District would react in a similar manner to the taxi drivers. No one wants to be told how to run their business, especially by people with little experience in their industry.
I am not suggesting that the law should continue to require taxi drivers to use the zone system. Instead, I am making what has, unfortunately, become an unpopular assertion. We should let the decision be made in the marketplace. Decisions regarding taxicab services should be made by the two parties involved: drivers and customers.
Adding the government to the equation has created a situation in which both parties go to the government for help instead of going to each other. The result is less freedom for both drivers and customers.
The time has come for the District to deregulate the taxicab industry. Other cities have successfully removed regulations and created freer markets for both drivers and customers. As long as the government has its hand in the industry, some group of people will be upset.
There are not too many laws that have universal approval, especially those regulating taxicabs. Taxi customers stand the best chance of having their needs met when governments play their rightful role and stay out of the business altogether.
How many hours has Mayor Fenty logged behind the wheel of a cab? What qualifies him, or anyone else in the D.C. government, to decide how the taxicab industry should operate? Only drivers can react to the signals put out by the market, and only customers can send those signals.
District officials should let individual drivers decide how they want to operate their cabs. Based on the recent actions of drivers, it appears that many of them will choose the zone system at the beginning. However, the public has expressed interest in taximeters. Therefore, drivers who choose meters will see an increase in business, while zone drivers will have difficulty filling their cabs.
Only under a market system can cab services be customized to meet the needs of all customers. Some want meters, others want zones. A few customers may demand hybrid cabs, while others want the cheapest ride possible. Cities with regulated taxicabs rarely have the flexibility to offer such diverse services.
The justification for taxicab regulations is weak. Regulations allegedly keep prices fair. What is a fair price for a ride from Georgetown to Union Station? Well, that depends on a lot of factors, few of which are taken into account by the government’s regulations.
A fair price can be determined only by taking into account factors at play in a particular situation. The government cannot have a role in this process unless Mayor Fenty and his staff want to spend a lot of time following cabs around the District.
As long as the District of Columbia regulates the taxicab industry, both drivers and customers will continue to be taken for a ride.
Jeff Proctor is a resident of Arlington, Virginia. He researches and writes on issues relating to social and economic liberty at jeffproctor.wordpress.com.
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