A Rigged Competition: Ride-Hailing vs. Car-Sharing
07-26-2016 01:20pm

A Rigged Competition: Ride-Hailing vs. Car-Sharing

Luddites and taxicab protectionists alike lament the fact that ride-hailing services like Uber and Lyft face lower taxes and fewer regulatory burdens. However, such complaints cannot be levied against car-sharing firms like Zipcar and Car2Go.

As Josh Zumbrun reports for The Wall Street Journal, “Local governments around the country are tipping the scales and helping to shape the industry’s winners and losers” by increasing taxes “on the car-sharing industry but not ride-hailing.”

Unfortunately for the car-sharing industry, it entered into an already heavily-taxed sector of the economy: rental cars. As Zumbrun explains, rental cars’ “taxes often are intended to extract revenue from business travelers, although in practice many are applied on a per-transaction basis.” For example, Zumbrun writes that “A business traveler might barley notice a $4 tax on a $100 car rental for a multiday trip. Someone paying $4 in tax on an $8 one-hour rental, however, is far more likely to take notice.”

However, as a new Mercatus Center report argues, the comparable absence of government meddling in the new ride-hailing industry versus the traditional taxicab industry is not an argument for intervention but rather one for de-regulating the transportation industry, including taxis and—in this case—the rental industry as well.

More Blog Posts

02-10-2020 05:11pm

Warrior for the First Amendment

Ashley Messenger didn’t plan on being a First Amendment lawyer. “It was an accident,” says Messenger, who is a senior associate general counsel with National Public Radio in Washington. But 20 years into her career, she’s worked with some of the most high-profile organizations in media and has watched how the industry and its environment has evolved along with shifts in technology and society.

Read more

04-16-2019 11:37am

New Survey Reveals American Consumers Support Businesses Hiring Those with Criminal Records

New research from SHRM and the Charles Koch Institute found that the vast majority of American consumers support purchasing goods and services from businesses that employ people with non-violent criminal records.

Read more

04-04-2019 03:05pm

On 70th Anniversary of NATO, Key Member States Question Its Relevancy and Efficacy

The North Atlantic Treaty Organization (NATO) celebrates its 70th anniversary, and in advance of this historical commemoration, a new survey asked respondents in key NATO member states about NATO’s effectiveness and relevance in today’s world.

Read more

Sign up for updates