Eco 315: Writing Assignment - Essay Example

due Taxicab Industry Operations and Government Regulations in Cincinnati Taxicab business in many cities is easy to start, operate and maintain at a very low cost. However, the market of this business in Cincinnati City has been a very pathetic one due to the regulations set for operation of the business. These regulations have made it a very ancient mode of operation making the business operate in very old ways and limiting it from responding to the current market and technology. The regulations limit potential operator with little capital from operating the business and introduce stiff competition and give room to a high level of creativity and innovation (Ottawa-carleton 2009).

These regulations are the reason as to why the business is not growing to a higher level. However, the entry of Uber and Lyft Taxicab Companies is a relief to the users and this marks an improvement in the industry. The industry of taxicab in Cincinnati city has been a real embarrassment. The vehicles used before the entrance of Uber and Lyft were very old and the rates charged very high. The availability of the service was very limited and poor too. Many of the companies in this industry have been very poor in the service because of failure to use appropriate technology and uniformity amongst the companies involved.

This has been the situation because the government posed regulations which prohibited the minor, independent type of operators to venture into the taxicab business. These regulations set by the government limited opportunities for people to engage in this business. These rules include the limit set of the maximum number of taxicabs in the city. This has been the reason as to why the prices of the service very high. For a company to venture in the business in the city, the company is supposed to have at least twenty five cabs otherwise the company is not allowed to venture in the business.

The companies with the capacity of twenty five cabs and above are mandated to operate for twenty four hours in all the days of the week. This locks out all the part time taxicab operators. According to the regulations set by the government, taxicab companies are supposed to have a dispatching office and this increases the cost of operation and prohibits all the individual cabs operators who prefer using a cellular phone in communicating with their customers. This ignores all these individual operators who can operate effectively with use of their mobile phones.

The city’s rules require the companies to prove that their business is cap[able of serving the need of the public. This creates an environment whereby the companies utilize their political power in the effort of limiting any competition from new companies. This causes burden to the new companies that are willing to venture in the industry. As a result, these companies continue exploiting the users with high prices and bad conditions of operations. In Cincinnati City, there is a regulation that the cabs should wait at cab stands officially set as waiting spaces.

This limits individual operators from negotiating with areas such as restaurants, clubs and theatres in order to have a more quick response to the patterns of the customer traffic. Having the official stands as the only place where one can board a taxi in Cincinnati City is a real inconsistent method of operating. According to the regulations, it was wrong for one to wave down a taxi when it is on the way. This method of operation reduced the number of events that took place in the town especially in town.

Businesses such as clubs and restaurants could not operate at their best optimum level due to the inconvenience in the taxicab industry. The entry of Uber and Lyft Taxicab Companies in Cincinnati City has brought a change in the manner in which taxicab companies operate in the city. The passengers are in a position to hail a ride with just a tap of a smartphone application. However, according to the other taxicab companies, this is violation of the law in terms of safety as well as fairness.

Consumers feel that these two companies operate in the interests of the users. These two companies’ mode of operation is as advanced as a 21st century one and the city embraces working with the companies. The city is in the process of working together with all the groups affected by the industry to make the law of the public vehicles more functional and effective to match an urban environment (Simes 2014). However, these companies operate against the city’s law because they bar all the cab drivers licensed and public type of transit operators from offering hire rides.

Uber and Lyft companies are facing criticism from regulated drivers who feel that drivers for these two companies are not treated equally with the regulated drivers. Regulated drivers feel that the drivers of the two companies have a great advantage. Insurance policies of the two companies are in question because the companies are not clear about the issue. In case of occurrence of an accident by the cabs of the two companies, all the responsibility falls on their drivers. Uber and Lyft taxicab companies have a great impact on the new companies entering the market (Jason 2014).

However, not unless there are proper set rules for the individual and minor taxicab operators, there will be a big issue on the safety of the users of the cabs. However, these companies have encouraged new entrants to join the industry without having to apply a high amount of capital in starting and operating. This will encourage competition and result to an innovative and creative industry. As a result, the cost of hiring a cab in the city will be relatively low due to competition. However, it is vital for the government to set strict rules regarding insurance policies on the new entrants in order to protect drivers and the users of the service.

It is important to set rules governing the capacity of the drivers to ensure that the drivers employed in these companies are of a high standard and of the right capacity. This will help in protecting consumers and ensuring their safety while using these new entrants. In conclusion, entrant of new taxicab operators will help its economy go high only if the city sets better rules governing operations of the taxicab operators (Perez-Gutierrez 2008). Work Cited Ottawa-carleton Taxi Regulation. Ottawa: The Committee,2009. Print. Perez-Gutierrez, Jorge.

The Implementation of Non-Adaptive Modes of Transportation and Their Effect on the Urban Form in Norwood, Ohio. Cincinnati, Ohio: University of Cincinnati, 2008. Print. Simes, Randy A. "Uber and Lyft to Soon Enter Cincinnati Market — UrbanCincy." UrbanCincy. N.p., 7 Mar. 2014. Web. 2 May 2014. . The Buckeye Institute for Public Policy Solutions. Buckeye Institute - Home. N.p., 20 May 1999. Web. 2 May 2014. . Williams, Jason. Uber, Lyft arrive amid praise, scrutiny . N.p., 10 Apr. 2014. Web.