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Maybe not every law is absurd and intended to block innovation but these laws most certainly are. It's a permit that the authorities don't have to grant and won't grant in exactly the cases where the new service is most needed. These laws are intended to preserve for existing bus drivers and cab drivers some monopoly power that they haven't earned via providing reliable superior service.



> won't grant

Do we know that? In this case it seems that they just didn't bother to apply. Unfortunately, that seems to be the normal way these ridesharing companies operate: ignore the law knowing that when they're called on it the media will spin it as "Evil Government Bureaucrat Does Job"

As others have pointed out, running the service inside of the regulation would probably require some changes on their part. In particular, I bet they won't be allowed to directly bill based on time or distance driven: if I'm on a bus that gets delayed in bad traffic or forced on a long detour I won't be asked for more money, but in a cab I would be. They should be able to still bill for distance-by-shortest-route though which should work well since it should be highly correlated, especially if they charge more during rush hour when travel is expected to be slower and thus costlier.


> I bet they won't be allowed to directly bill based on time or distance driven

Before jitneys were generally outlawed in the US a popular billing method was based on zones. You take a map of the city, chop it into regions and there's a flat charge for travel anywhere within one zone, a different charge to travel between two or more zones. The zone map and payment schedule can then be printed on a business card the driver hands passengers or painted on the side of the vehicle. This is a LOT cheaper and simpler and more predictable than a taxi meter and removes any incentive to take a longer or slower route, but regulators tend to hate it because without metering it's too easy for the cab driver to take payment in cash and avoid paying any taxes on the income.


Many cities have a form of this for a subset of rides. For example, it's quite common for there to be a fixed fare from the airport to the downtown core.




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