Is The Era Of Government Regulated Taxis Behind Us?

There have always been debates about how government regulations slow down the growth rate of infrastructures and factories of certain industries. The fact is that government regulations are an important part of commerce. But it is also equally true that too much of rigid government rules can serve as a deterrent for entrepreneurs to opt for that particular business and directly impacts the growth rate in a negative way.

Proper utilization of modern technology combined with an effective government control ensures technological innovation with reduced regulatory costs and fewer barriers to entry in the market. This helps in expanding the prospects and widening the horizon of opportunities for the country as a whole. It results in a higher standard of living of the general public.

How has The Regulatory Ambit Evolved With Taxi Apps?

Traditional cabs were under the local authority but with the introduction of online taxi booking software such as Uber, Lyft, etc. things are in for a transformation. Uber and Lyft and similar uber clone app escaped the red tape and the stringent policies imposed by the government. The government is trying to establish some control over such companies. But it should be noted that regulations imposed should not be to an extent where it strangles the very model by which the market is growing, and job opportunities are created.

Here, let us take a look at the past condition and how negatively it had affected the commutation market:

The Cost of Licensing:

The cost of licensing had been extremely high. The cost was imposed by the government and had been supported by giants of this field. This rendered it tough for the taxi drivers to act as free agents and they were burdened by the weight of lengthy bureaucratic procedures.

Dispatch:

The dispatching services were controlled by the taxi companies due to the factor of the economies of scale. The drivers and the riders could not be in direct contact. There was a non-existential level of trust between the two entities. The driver had no information about the rider, and the location quoted was hard to find, and the rider would have no clue as to the registration and license of the driver and his vehicle.

Difficulty in Access Outside The City:

For the riders, access to services outside the city area used to be weak and very expensive. These problems were solved by various apps for driver service like Uber, Lyft, etc. who were not yet under the purview of stringent government regulations.
So, from the above points, it has been quite clear that app-based companies like Uber have created opportunities and not mayhem. If the rules are a bit flexible, then it can work wonders for the transportation market. Several questions arise regarding the possibilities of growth had the regulations been slightly more flexible. We could have never figured out the vast growth potential and opportunities the commutation market holds had it not been for Uber, Lyft, etc.

The easing up of such unfavorable regulations can go a long way to ensuring steady growth:

1.It would reduce regulation and intervention of the government which will help to attract the potential investors to invest in the market. If the entrepreneurs sense that there is less bureaucratic red tape involved, they would be readily prepared to organize services for the consumers who would be directly profitable for them.

2.The entrepreneurs would be able to bring about innovation and creativity in their services with outing fearing what the government would have to say with every decision they make.

3.It would help to expand markets with growing opportunities and increasing investors.
It may be any market be it the taxi business or health and care or food industry, energy; government regulations should be up to a prescribed level which does not threaten the future of the economy but at the same time maintains a level of law and order in the market

Many might believe that the government is operating on a zero sum scarcity approach only concerned about secure job levels, but it is imperative that we shift this attention towards an expansion module. If there is an expansion in the market, the standard of living of the general public would automatically increase. It is important that the government understands that just existing in a competitive market will not do in today's dynamic environment; greater risks are to be taken to achieve greater profits which would directly benefit the general public.

There can be numerous growth opportunities as shown by Uber when the companies are given the opportunity to act freely. There has been a huge introduction of Uber Clone Apps wherein they are aping its basic premises to start off a profitable business.

Now the question arises as to whether we have left behind the government controlled apps. With this spread of knowledge about excellent growth opportunities sans government regulations, many measures have been taken towards de-regulation purposes, but we still have a long way to go.

Signing Off

Apps for driver service is a new concept that is considered as a very profitable source of income for entrepreneurs looking for business opportunities. With improved and advanced technological innovations put in place, the entrepreneurs can take a huge advantage of this sprawling market. But these young buds will be discouraged from entering into a market which is ridden with harsh policies and regulations at every step of the way.

So to ensure that this does not happen, the government authorities need to deregulate their activities. The drivers and the app-based companies should be given a bit if freedom, but it should be ensured that only qualified and licensed drivers are at work. The system cannot be entirely free of regulations, but it should also not meddle in its daily affairs. That is the only way to ensure positive and a high level of growth for the businesses.