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Benefits Of Legalizing And Regulating Uber

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By legalising and regulating Uber there are several possible potential costs and benefits that society would face.

Legalising and regulating Uber would negatively affect taxi companies since they are in competition with Uber (Cramer & Krueger, 2016). It will cause a decrease in taxi companies’ revenue due to sharing the market with Uber (Rahel, 2016).

Due to more cars on the road, traffic can be negatively affected and might result in congestion. It also leads to higher CO2 emission (Rogers, 2015).

Government regulations and restrictions such as licenses are used to protect the taxi industry from competition (Petropoulos, 2016). Uber does not require its drivers to hold particular licenses, which has caused the actual value of taxi licenses to be decreased (Petropoulos, 2016).

Before Uber entered the market, taxi companies benefited from regulations in place as they offered protection from competition (Petropoulos, 2016 and Rahel, 2016). These regulations have also caused a limitation in revenue earned by taxi companies since uber formed. Current regulations mean taxi drivers must conduct pick up and drop-offs in areas defined under the regulations whilst Uber has no limitations regarding number of drivers or areas where drivers are to operate in. (Rahel, 2016).

Due to the increase in competition taxi drivers’ income has been negatively affected and there has been a decrease in their salary (Rahel, 2016). This is forcing taxi drivers to seek alternate employment to

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