Pioneer Institute: Taxi deregulation 'wouldn't be simple'
Deregulating the taxi industry in Massachusetts "wouldn't be simple," according to a policy brief released Monday that warns against passing a law that would discourage new ride-sharing companies from operating here.
According to the Pioneer Institute brief, legislation pushed by a pair of lawmakers from Boston would require rideshare drivers at companies such as Uber and Lyft to carry $1 million in commercial insurance coverage, compared to a minimum $20,000 per person and $40,000 per accident required of taxi companies.
The brief concludes the more stringent requirement "would kill their business."
As for taxis, the brief lists ditching the medallion system as an option, but warns of a potential public backlash to municipalities buying back medallions they had issued. Another option would be issuing less expensive, non-transferable permits to for-hire vehicles.
"Regulation reform will be key to the survival of the taxi industry, though it may not be sufficient," according to the policy brief. "To keep up with popular businesses like Uber and Lyft, taxi companies need to do the same things firms in most consumer-oriented marketplaces do: stay competitive by improving their service and pricing."
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