Monday, August 23, 2010

SLC Running Own Businesses Out of Town

For a country that believes in the free enterprise system, we sure shoot ourselves in the leg a lot.

Salt Lake City is reaching for a rifle as we speak, aiming to fire a shot at its own taxi industry. Saturday's Deseret News says the city will put cab service out for bids, selecting just two companies.

Just two.

As best as I can determine, the idea is taxis will do better if they don't have so much competition. You read the quote the DesNews got from Ray Mundy, the transportation expert whose study is behind this, and tell me if that isn't what it all boils down to:

"Fewer vehicles generate more trips per vehicle and more revenue. It's in the public's interest to regulate."

Regulate? That's one thing. But this will be flat-out legislating companies out of business, telling them they have no right to exist anymore, at least not within Salt Lake City.

Why is Salt Lake City picking on just the taxi industry? If this is such a good idea, why not just two fastfood restaurants, and two companies to sell us cars, and two grocery stores? Each would be allowed to have more than one store or dealership, just as the taxi folks are allowed more than one taxi. If I'm reading the DesNews story right, Salt Lake City is going to give the two winning taxi firms a limit of just 200 cabs.

Maybe limiting taxi business to two companies makes sense to some, but it doesn't to me.

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