In Denmark Uber was cheaper, more reliable and vastly better than taxies until it was banned by the government to protect the taxi cartel. And it was actually profitable for Uber. I don't have to make up an anecdote about poor taxi service.
Cheaper: Yes, because VC. [1] Uber quit Denmark before their prices rose elsewhere.
Profitable: Hard to say! According to their tax statement, they made a whopping $5600 in Denmark in 2021. [2] When Uber drivers, unlike taxi drivers, have to factor in the expense of casually ride-sharing their car, that does count towards Uber's profitability.
Banned by the government to protect the taxi cartels: Not exactly. They changed the taxi law in one way to remove the cartel effect (the rule about how many taxis there could be), and introduced rules that effectively targeted ride-sharing apps like Uber and Lyft. New taxi companies do exist today because of that: E.g. Drivr, Viggo.
The new taxi law requires taxis to have equipment like meters and seat sensors, and requires drivers to take an additional driving course, pass a health check, have had a driver's license for 3+ years, and speak Danish. So effectively, this targeted Uber and Lyft and other companies with a clear message that there's a lower bound for what's considered a taxi service in Denmark.
Claiming that's a cartel effect is turning a blind eye to a widely held opinion that one disagrees with.
sshine|2 years ago
Profitable: Hard to say! According to their tax statement, they made a whopping $5600 in Denmark in 2021. [2] When Uber drivers, unlike taxi drivers, have to factor in the expense of casually ride-sharing their car, that does count towards Uber's profitability.
Banned by the government to protect the taxi cartels: Not exactly. They changed the taxi law in one way to remove the cartel effect (the rule about how many taxis there could be), and introduced rules that effectively targeted ride-sharing apps like Uber and Lyft. New taxi companies do exist today because of that: E.g. Drivr, Viggo.
The new taxi law requires taxis to have equipment like meters and seat sensors, and requires drivers to take an additional driving course, pass a health check, have had a driver's license for 3+ years, and speak Danish. So effectively, this targeted Uber and Lyft and other companies with a clear message that there's a lower bound for what's considered a taxi service in Denmark.
Claiming that's a cartel effect is turning a blind eye to a widely held opinion that one disagrees with.
[1]: https://www.latimes.com/business/technology/la-fi-tn-uber-ip...
[2]: https://kobenhavnliv.dk/kobenhavn/tallene-gaar-op-uber-denma...