Friday, July 18, 2014

Issue 382 Ride Sharing (escaping the taxi) July 18, 2014

Did you know there is a way to escape the business regulations that govern taxi cab drivers and similar highly regulated industries?  Well there is a way and it is modeled a little on carpooling.  Here is how it works.

How it works:  The concept is simple, you set up your clients with you as their driver and you drive them to their destination.  However, you take a suggested donation.  How these drivers vet their clients varies (some use Facebook or other social networking sites) but the ultimate method of this underground industry is to set up a system that allows their clients to write reviews on them and them on their clients.  The drivers of course can write reviews on their clients so as to warn other drivers of bad tippers, bad attitudes or even black listing them. 

The suggested donation part makes it actually legal to do however.  While by law, it is a donation (terminology is subject to change based on changes in what is taxable by law) it is actually income, with the terminology being the fine line.  However, we do not care about that as if these drivers go through traditional methods including becoming a taxi cab driver, they would be forced to pay thousands of dollars to be licensed to a company and would not be able to keep most of their earnings.  If fact to become an independent operator, a taxi cab driver would have to pay almost one million dollars just to get that "privilege".  But this ride sharing scheme ensures you keep your earnings as a private driver who can pick and choose their clients (untaxed).

Conclusion:  No I am not saying break the law, but this business is a reaction to the over-regulation that squeezes out the little guy.  Those independent drivers now have a place to practice their preferred trade without the extra burden. So pardon me, but I am rooting for this underdog and the success of these men and women who wish to bypass the illogical regulations and embrace the true spirit of capitalism and freedom.


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