New study shows Uber and the taxi industry can co-exist

A new study from the Montreal Economic Institute suggests ride-sharing companies like Uber and the taxi industry can share the road a competitive and fair market.

Critics of Uber have been quick to point out the rules cab drivers have to abide by, which Uber drivers don’t, but in Australia, there is a $1 tax per ride, in order for taxi drivers to “buy back” their license.

Youri Chassin is an economist with the MEI and said the idea of this study is to show there is a solution.

”The whole point is to change, a little bit, the industry, to allow competition because the consumer is clearly a winner in that case, without creating big losers,” he said. “I think this is the way to go, this is compassionate, and it’s probably the kind of solution we should study more.”

He added the temporary tax makes it fair for the taxi industry, promotes competition, and could raise $250 million towards licenses in the next five years.

Edmonton recently became the first city in Canada to announce the legalization of Uber, but compensation has not been offered to taxi drivers.

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