Tuesday, November 18, 2014

Nashville gets a "C" rating for being transportation-friendly.

This is not the map. To view the interactive map and scorecard that grades 50 cities on their regulatory openness toward car services click this link: View the Map.   From the map click on a city to learn about the regulatory environment of that city. Out of 50 cities rated for how transportation friendly they are, Nashville ranks 36.  That is not good, but had not Nashville ended their price-fixing in January of this year, we would have probably been in last place. Actually Nashville did not end price-fixing but reduced minimum fares for limousines from $45 to $9 which essentially made it of no impact. Below is what Ridescore had to say about Nashville.

  • Taxi Friendliness D
  • Limo Friendliness B-
  • Transportation Network Friendliness B-
Nashville has a highly regulated vehicle-for-hire market that imposes significant barriers to competition and innovation.
Competition in the Nashville taxi market is restricted by a regulatory limit on the number of entrants, which takes the form of a medallion system. Commodifying the right to do business is far worse than a fleet cap, as it creates a rent-seeking cartel of medallion owners with incentive to influence policymakers and promote regulatory capture.
Limos in Nashville operate relatively freely, but still face common legacy regulations that undermine their ability to innovate and be competitive. While there is a minimum fare in place that we’d like to see removed, it is only $9.
The regulatory environment in Nashville has been accommodating to transportation network companies, although policymakers have not officially legalized their operation.

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