Thursday, June 12, 2014

Safety; first refuge of the regulatory scoundrel

California regulators are threatening to revoke permits for on-demand ride companies UberX, Lyft, Sidecar, Summon and Wingz unless they stop giving rides to and from airports within two weeks.
The move could lead to the state shutting down the companies' operations.
"We have heard numerous complaints that (our) safety rules are being ignored," Michael Peevey, president of the California Public Utilities Commission, wrote on Wednesday in an unusually stern letter to the transportation network companies, or TNCs.
What Peevey actually is concerned about is that licensed taxis and limos pay for the privilege of taking passengers to the airports, and that that revenue to the governments will decline if those dastardly ride sharing companies get all the customers--by offering lower prices.

But that doesn't sound as benign as, 'We're from the government, and we're here to protect you whether you need us for that, or not.'

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