South Park Skewers Taxicab Unions

Posted by Meagan Nelson on Monday, October 20th, 2014 at 4:45 pm - Permalink

On-demand car services are currently the hottest thing in tech, and while hit TV shows like “South Park” are highlighting this phenomenon, taxi drivers are doing everything in their power to stop it.

 

On demand car services, also known as “ridesharing,” allow customers to request a car from their phone, track the car via the phone’s GPS, and pay from their credit card that the ridesharing company has on file.  While one such car service, Uber, is worth $18.2 billion dollars, and is by far the most popular ridesharing method, taxicab drivers argue that Uber should be banned because it does not have to follow the same regulations as taxicab drivers and the service unfairly excludes low-income people.

 

An Uber spokesperson quoted in VICE Magazine argues that Uber cars are different than taxis, so they should not have the same regulations as taxi drivers. If taxicab drivers are mad that Uber drivers have less regulation than them while they still get to operate, then clearly, the problem is not Uber, but the regulations that both these taxi and car services must go through. These regulations need to be eliminated or revised.

 

Another argument made against Uber in the business journal, Albuquerque Business is that because of Uber’s credit-card only business model, it excludes low-income customers. Attorney Michael Cadigan of Cadigan Law summarizes the argument:

 

“Uber and Lyft, no matter how innovative their arguments are, they’re law breakers. These companies cater to people with credit cards, the cream of the crop, leaving cab companies with riders with Medicare vouchers, DWI vouchers, and cash payers who sometimes don’t have enough.”

 

This argument is specious. First, just because someone owns a credit card does not mean that they are wealthy, and the truly impoverished people will not be taking Ubers or taxis, but will be using other modes of transportation, such as walking, biking, taking the metro, or bussing. Additionally, according to the news journal Before It’s News, taxi drivers are famous for not providing service to minorities or low-income people, while Uber claims to provide 40 percent of its service to low-income communities.

 

 Uber actually helps the poor not only because of this service to low- income areas, but because it is more efficient. Uber drivers are required to take a geography test before they are hired according to Wired Magazine, and Uber passengers are always ready to go. Taxi drivers often get lost and force customers to pay higher fares. Low-income and high- income consumers will save money by using Uber’s services.

 

Also mad at Uber are taxicab unions. The South Park episode that aired on October 15, 2014, “Handicar” exemplified how unions will do anything to break down their competition without wanting to compete themselves. In the episode, Nathan and taxicab union drivers want to shut down the service “Handicar” run by Timmy Burch because of its popularity and its ability to take away business from them. So union goons break Timmy’s legs in an effort to sabatoge the car service and they also try to get government officials to shut Handicar down. The plan backfires because Timmy keeps finding new ways to innovate and the demand for Handicar keeps increasing.

 

A perfect parallel to how unions try to stifle their competition instead of improving their services is during the meeting in the South Park episode, when the taxicab drivers are trying to figure out how to combat their business losses, and Nathan’s friend Mimzy says, “Hey, I got an idea, why don’t you guys just make your cars cleaner and nicer, and try to be better to your customers, so that you can compete with Handicar’s popularity in the marketplace?” Nathan responds by answering, “Ignore my friend. He is mentally disabled.” What a perfect encapsulation of how unions view competition.

 

Unfortunately, these government prohibition attempts are not only happening in South Park, but are also happening in Boston, Massachusetts. Labor unions tried to get Massachusetts city officials to shut down Uber instead of improving their own services. When the government did outlaw Uber, customers used it anyway and protested that Uber was better for consumers. Because of Ubers’ competitive creativity, and high demand from customers, the government bans were overturned in Boston and elsewhere.

 

At the end of the South Park episode, a race is scheduled between all the different car services, and Timmy’s Handicar emerges victorious. Taxicab services will have to stop making illegitimate excuses for shutting down Uber and other car services and instead will have to improve their services if they ever hope to keep their jobs. They are losing “the race” against other car services.

 

Taxicab drivers could learn a lot about economics from South Park. But then again, couldn’t we all?