Town car and taxi regulations across the country are facing heat for requiring certain “luxury” businesses to charge more for their services than other businesses, like taxis.
In Portland, the City recently enforced fines and a threat of suspension against two town car companies for offering Groupon daily deals for their services at discounted rates.
Why is offering incentives for customers to use luxury services such a terrible thing? Town cars in Portland are required to charge at least 35 percent more than taxis for a trip anywhere in the city. Trips to the Portland International Airport are required to cost customers at least $50. Not to mention, town cars are not allowed to pick up their customers until at least an hour after the ride was requested.
The Institute for Justice has challenged this absurd law in Portland and in other cities, pointing out that government shouldn’t be in the business of requiring businesses to overcharge their customers.
This video shows the hilarity of a limo and sedan law in Tampa, Florida, which is similar to Portland’s law.