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Regulation and Competition of Taxi Services

  • Siniša Petrović
  • Tomislav JakšićEmail author
Chapter
Part of the Ius Gentium: Comparative Perspectives on Law and Justice book series (IUSGENT, volume 76)

Abstract

Throughout the world, the taxi market is generally considered a heavily regulated market. Such regulation refers primarily to establishing market entry restrictions, establishing taxi fares schemes, setting up of minimal passenger safety and protection standards, as well as ensuring that certain universal service requirements are adhered by respective taxi operators. Market regulation is normally justified where externalities prevail that ultimately harm competition and go to the detriment of overall consumer wellbeing. Regulation of taxi markets resulted in the creation of closed market structures. This eventually led to the establishment of a monopoly or an oligopoly of a limited number of taxi operators that enjoyed significant economic protection, normally denied to other entrepreneurs. The need for such severe restriction of competition generally invoked upon the necessity of establishing a valid consumer protection environment. The appearance of Uber demonstrated how a strong-willed participant can stir the pot. Uber was generally being denied market entry on such restrictive regulatory grounds. Appearance of Uber revived interest in the dormant taxi market and raised the unpleasant issue of whether such stringent regulation can still be justified. This chapter will elaborate on the fundaments of regulatory intervention in a market, the current taxi market structure, the Uber business model and ultimately on the adequacy of grounds used to justify institution and enforcement of such regulatory measures in the taxi market.

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Copyright information

© Springer Nature Switzerland AG 2020

Authors and Affiliations

  1. 1.Faculty of LawUniversity of ZagrebZagrebCroatia

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