Will delaying online cab service pickups by 15 minutes increase competition in France

An article in the Wall Street Journal titled “Uber, Taxis engage in French Street Fight” (30 December 2013) describes a proposal to impose a 15 minute delay between the online order and pickup by online by limo service companies like Uber in France. This delay doubles the usual time for pickup for such companies and is intended to help taxicabs with medallions plying in France. The taxicab companies complain that they have more restrictions and that online taxi companies need to face some restrictions in turn. Will a 15 minute imposed delay provide the kind of competition that will help customers ? Are there alternative restrictions, such as caps on surge pricing that may benefit customers and moderate capacity levels across online and street hailed cabs ?

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About aviyer2010

Professor
This entry was posted in Operations Management, Service Operations, Supply Chain Issues and tagged , , , , , , , , . Bookmark the permalink.

One Response to Will delaying online cab service pickups by 15 minutes increase competition in France

  1. Does imposing an regulation restrict a free market benefit consumers? Usually no. This regulation gives taxis an unnecessary quickness advantage that allows them to charge more. What kind of regulations do the taxis face, and why are they there in the first place? Some are there to guarantee a certain “quality of service” for cab riders. Will Uber stay in business very long if they have poor quality of service? Doesn’t Uber require certain levels of background checks and driving ability like taxis anyway?
    Deregulation is likely better for consumers.

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