It's all about . . . Uber

Photo: Contributed

It is not even Uber cool to use the word Uber anymore. 

From taxi rank strikes to threats of murder and legal challenges, you can’t turn on the tv, radio or internet without finding up to the minute play by play reporting of where Uber is at today.

Interestingly, despite its struggles and challenge of lawsuits from drivers to municipalities, Uber is still the darling of the VC world, with a dramatically inflated valuation. It is not showing signs of slowing down either.

So what just happened?

Here is my view of the world, and it is pretty simple.

Government got involved. Government has no place in business - period. I am not talking about Uber - I am talking about the taxi business initially. 

Licensing taxis was just a cash grab for municipalities and has turned in to a nightmare as a redefined ride share business has moved in. Their involvement in the taxi business has stifled research and development - for goodness sake, you have only recently been able to use a credit card to pay for your taxis ride in some cities. It has also led to upward pressure on fares as cab owners download the onerous fees to the fare paying passengers.

What is the solution? Well, frankly it is not changing laws to keep Uber out or suing them in the courts… that is government getting involved in business again. Particularly when Uber has done nothing illegal.

The answer is FREE ENTERPRISE. Uber has done a fantastic job of pushing an industry that had stagnated. In response, the industry should in fact modernize. Several innovative tech groups already have “hailing apps” that registered taxis can use, which they need to use to catch up. Clients have been frustrated with the level of service in many locations, and Uber found a gap in the market. Boy, did they ever plug it. Now is the time to help the taxi industry modernise, not regulate Uber out of town.

While I am on the subject, the same is true for Liquor Stores. Why was there a regulation that ensured no liquor store could be within one kilometre of another? What was the point?

Why have we not done that for restaurants or tire shops or clothing stores? Because entrepreneurs don’t like governments messing with their business. They thrive on competition.

Does anyone really believe grocery store liquor sales will put our winery industry out of business?

OK, I am off the soap box, but it is an Uber important topic that young voters and entrepreneurs need to keep well in mind. 

For more insight, grab yourself a copy of The Law by Frederic Bastiat - and BTW, take a look at when it was written.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.