After Winning Regulatory Battle Against Ride-Sharing Firms, Austin Turns to Black Market and Deregulation – Reason.com

And, ironically in the wake of a “victory” for pro-regulation forces, there’s been a big surge in completely unregulated rides arranged by word of mouth, through closed social media groups, and through peer-to-peer services. On Facebook, Austin Underground Ride (currently around 6,500 members) urges former Uber and Lyft drivers to join. “You can post your availability and info on this page and continue making the money you need to feed your families and pay your bills. Riders can post here their needs for a ride as well. We don’t need anyone. We can make our own deals as people and take care of ourselves.”

On a similar note, Arcade City tells potential downloaders of its app, “Our drivers are entrepreneurs, free to make their own choices about how they want to comply (or not) with government regulations. Some of our drivers want to get fingerprinted and comply with the Austin regulations. Some do not. We respect their choices.” The company’s Austin Facebook page currently has over 28,000 members.

Technically, underground drivers are breaking the law if they charge more than the federal reimbursement rate of $.54 per mile, and some are concerned about police stings. But the transportation black market has arranged itself to be as undetectable as possible.

That nobody saw this coming is hard to believe. Maybe city officials just don’t care. (emphasis added)

Well, politicians are doing what politicians do. First they regulate. Second, they regulate for whomever is organized and has the money to buy influence.

Of course, the psuedo-intellectual elite politicians in Boulder most likely can regulate better than their Austin counterparts. I can’t wait.

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