ABSTRACT
The concluding chapter discusses the path forward from where Seattle finds itself now. It is asserted that economic deregulation – similar to 1979 and 2014 – is not the answer. Economic deregulation would work against some of the main goals of taxicab regulation: keeping taxicabs available and affordable, allowing taxicab drivers to earn a living income and because rate cuts from a competitive marketplace will decrease total revenue because consumer demand is price inelastic. And, of course, deregulation inevitably causes an oversupply where no one can earn a living income. The reasons for competitive market failure from economic deregulation are identified as transition to independent contractor industry structure, some submarkets not subject to market forces, consumers have imperfect information about prices and oversupply causes chronic low prices. TNC strategies for dominating the for-hire transportation marketplace in Seattle and elsewhere includes the following list identified by various industry analysts: predatory pricing (below-cost rates), price gouging (surge pricing), skimming the cream (surge pricing based on consumer surplus), market disruption (ignoring license and insurance requirements applicable to competitors) and exercising control over drivers (invalidating independent contractor status of drivers).The TNC political campaign to replace city regulation in Seattle with state regulation (state preemption) is studied. This chapter concludes with suggestions from the author on how to save the taxicab industry in Seattle: minimum trip fare or distance rate (Demand), controls on issuance of new licenses (Supply) and preserve stand-and-hail submarket exclusively for taxicabs. Taxicab industry economics are revisited. Taxicab driver average hourly income calculations for 2007, 2008 and 2017 are explained. State and city minimum wage laws are discussed. Future projection on taxicab industry economics in Seattle are offered. The New York Plan (2018) for TNC economic regulation that was recently passed by the New York City Council is evaluated in depth. The problem of TNC growth and traffic congestion is examined. Finally, a post-taxicab Seattle scenario is explored.
