Search This Blog

Saturday, August 23, 2014

Ride-Sharing and Regulation

Regulation is often a political weapon that businesses and professions use against competitors.

At CalNewsroom, John Hrabe reports:
Just hours after he voted against California’s burgeoning ride-share industry, State Senator Ben Hueso, D-San Diego, was arrested for driving under the influence.
According to the Sacramento County Sheriff’s Department inmate log, Hueso was arrested early Friday morning by the California Highway Patrol on two misdemeanor charges of driving under the influence. He was booked at 3:27 AM.
On Thursday, Hueso voted in favor of a bill that one ride-share executive fears “would literally spell the end of the ride-share industry.”
Hueso also has a conflict of interest: his brothers own a cab company.

Hrabe also reports:
Los Angeles City Councilman Paul Koretz is one of the state’s biggest opponents of ridesharing, the relatively new service provided by such companies as Uber, SideCar and Lyft. He’s also a leading recipient of campaign contributions from the taxi industry.

During a Wednesday appearance on one of Southern California’s top-rated radio shows, Koretz admitted he’s taken money from cab companies.

“I’m mad that you’re doing the bidding of the taxi companies because that’s what this is really about,” John Phillips, the quick-witted co-host of KABC AM 790′s Mid-Day LA show, said during a heated exchange over controversial new regulations on ridesharing services. “The taxis are now having competition from someone who is eating their lunch.”

Then, he bluntly asked Koretz, “Do you take any money from the taxi cab companies? Have you gotten any contributions?”

“Yeah, sure,” the councilman replied. “A few bucks here, a few buck there.”