October 28, 2018

Toronto cabbies launch “no hoper” lawsuit with $1.7B taxpayer bailout demand

David MenziesMission Specialist

Thanks to the Internet and the Smartphone, we’re increasingly living in a world where new enterprises like Uber and AirBnB are thriving, and old ones like taxi cartels, are dying.


We live in a capitalist society that subscribes to Darwinism’s survival of the fittest: Offer goods and services that consumers want at the right price, and you’ll likely thrive.

Take the opposite approach and get ready to encounter your own extinction event.

In markets all over the world, the taxi business is suffering due to ride sharing options like Uber and Lyft and now those heading up the taxi industry are embracing the decades-old business plan of demanding a taxpayer bailout!

Indeed, in July, a class-action lawsuit was filed by three drivers against the City of Toronto seeking $1.7 billion for investment and income losses.

I’m going to go out on a limb here and predict this lawsuit is a no-hoper, and explain why we can’t afford to reward failure.

Comments
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commented 2018-10-29 21:25:27 -0400
- Enough of the corporate welfare.
commented 2018-10-29 12:53:23 -0400
Paul Taylor,

Where did you hear that since it’s not remotely true?
commented 2018-10-29 12:20:57 -0400
Mike Bell correctly said, " I’m reluctant to encourage “investment” in schemes of artificial scarcity – but I do have sympathy for them. "

Mike agreed, this is why I dislike Scheer’s DAIRY CARTEL which gives us a shortage of products so that we have to pay more.
commented 2018-10-29 10:53:33 -0400
I have some sympathy for them.

They were sold a bill of goods – i.e., a taxi license – that they shouldn’t been sold in the first place. The city should have never limited the number of cabs on the road, leading to artificial scarcity and thus value in the (transferable) taxi license.

Thus, in fairness, they were misled by wrong government action in the first place. If that hadn’t been the case, the problem wouldn’t exist at all.

I’m not sure that this means that they should get compensation – I’m reluctant to encourage “investment” in schemes of artificial scarcity – but I do have sympathy for them.
commented 2018-10-29 07:13:52 -0400
I thought that cesspool called Toronto was going auto free!!! That would include cabs, would it not????
commented 2018-10-28 22:58:58 -0400
Maybe it’s a nostalgia thing, but I still only take cabs when I need a ride.
commented 2018-10-28 22:22:39 -0400
Most cab drivers aren’t Wall Street investors; they were misled on the supposedly lifetime guarantee of the license.
The selfish Toronto City Council didn’t have a problem taking the $220.000 from these usually poor people, so they should have some liability.

Likely 99% of the drivers wouldn’t sexually abuse anyone, although they may have gypped people out of a few bucks.
commented 2018-10-28 20:52:15 -0400
Bruce Atchison: I agree 100%. I have put time,money and much effort into a number of pursuits over the years.Some were lucrative,others not so much,but the “bottom line” is as your statement indicates.If people don’t want to buy it,use it,watch it etc. then that , as they say , is that and you must move along FROM that…..
Some posters have stated that the cabbies “played by the rules”… well… welcome to reality.Sunny Days and Sunny Ways play well in a Hollywood fantasy with a happy ending,but the School of Hard Knocks offers a more practical education,leaves a lasting impression and will aid in your becoming a realist much sooner.Who ever said that life was fair?……..Think for yourself and make rational decisions but certainly do not rely on governmental / political input and assurances,as they are,to say the least,transient
commented 2018-10-28 19:51:42 -0400
“Going by Cab can be dangerous”
Certainly not alone, especially if you are a woman or a young adult.

Space Moose, dollars to donuts they get the bailout for that very reason.
commented 2018-10-28 18:49:52 -0400
Going by Cab can be dangerous these days. Beware of drivers with beards and a Zombie Knife on the passenger seat.
commented 2018-10-28 17:41:53 -0400
You know this will get politicized some how. Some lawyer will say that it is racist because most taxi drivers are immigrants or some asinine drivel like this.
commented 2018-10-28 16:06:59 -0400
Exclusivity and Control caused the Price of Cab medallions to increase to six figures . . . . technology and innovation caused them to decrease in value . . . . In many cities these Taxi cabals bought out the smaller firms to control their markets . . . . party’s over guys . . . . Taxi companies going the way of Steam Trains, Liberal Ethics and Venezuela.
commented 2018-10-28 15:38:49 -0400
Too bad I can’t use the same excuse as those cabbies. I sunk a lot of money into publishing my books but they failed to sell. But I realize that people buy what they want to buy and my books didn’t appeal to them. That’s why I won’t take grant money from the government. People shouldn’t be forced to pay for books they don’t want to read. And my failures have taught me to be a better researcher of what the public wants to buy. It’s an expensive lesson but I sure learned it well.
commented 2018-10-28 15:36:59 -0400
The culture of perpetual victim hood, no surprise here.
Tough luck cabbies, you made your bed now sleep in it.
commented 2018-10-28 14:49:38 -0400
Canadian taxi drivers should
Sue for Losses, these drivers invested hundreds of thousands of dollars into their operations with idea if reselling their plates as
Part of their retirement program but munipalities dropped
The plate value crippling their pension plans. This
Practice is an old one that people counted on to aid
Retirement. Uber should be to pay those loses. But what would think of charging a muslem company for causing so much loss to so many people.
commented 2018-10-28 13:30:08 -0400
The taxi drivers are right. They played by the rules set by the politicians and paid hundreds of thousands of dollars for taxi licences and other fees to meet regulations, only have those same politicians allow the likes of Urber to operate with no such costs. I would be suing as well.
From The Ground Up