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In order to operate as a taxi driver, drivers must obtain limited ‘medallions’ i


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In order to operate as a taxi driver, drivers must obtain limited ‘medallions’ issued by the city. These permits are very expensive, in some cases costing about $200,000. In addition, drivers and their vehicles must meet costly safety requirements that cut into their profits. With the advancement of smartphones, people can now request a driver to take them from point A to point B. These drivers use their private vehicle to operate like a taxi.
Compose a short essay in which you address the following questions”
Distinguish between a competitive market (i.e. perfect/monopolistic competition) and a non-competitive market (monopoly). What characterizes each market structure? What are some positives and negatives about each? In the case of taxis, what are the barriers to entry?
According to the articles you read, what are the arguments provided by taxi drivers for why ride sharing services need to be monitored? What do ride sharing services such as Uber and Lyft argue in defense?
In your opinion, should ride sharing services be allowed to operate freely without having to meet the same requirements as taxi drivers? Or should the government step in treat Uber and Lyft like a taxi company and require them to bid for one of the limited ‘medallions’ in a city? Is this a case of unfair competition? Or unwanted competition?
minimum 3 pages
APA formatting
Times New Roman Font (12 point), double spaced
strong and clear thesis statement
separate introductory and concluding paragraph
works cited section
Beard, S. (2019, May 14). London taxi drivers hail “The Knowledge.” Marketplace. Retrieved from (Links to an external site.)
Bodnar, B. (2018, June 29). Monopolies can lead to terrible economic behaviors: A story of cabs and Uber. Marketplace. Retrieved from (Links to an external site.)
Chappell, B. (2017, December 20). European courts says Uber is a transport company, in a win for taxi drivers. NPR. Retrieved from (Links to an external site.)
Edwards, J. (2014, November 28). Uber is destroying the value of taxi monopolies in a bunch of American cities. Business Insider. Retrieved from (Links to an external site.)
Hirst, N. & Posaner, J. (2017, September 22). If Uber can’t make it in London, then where? Politico. Retrieved from (Links to an external site.)
Pathe, S. (2014, October 2). Uber the unfair? Are ridesharing firms exploiting deregulation? PBS Newshour. Retrieved from (Links to an external site.)
Segarra, M. (2017, April 3). New York’s taxi economy implodes. Marketplace. Retrieved from (Links to an external site.)
Studio SoCal. New Ridesharing Economy. [PBS]. Retrieved from


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