Philip Stevens’ article in last week’s Sunday Times nicely documents why taxis in London cost twice as much as in other major cities like New York.

Rules restricting the numbers of taxis on the road and archaic training regulations have led to a shortage of “rank and hail” taxis on the roads. The result is increased waiting times and extortionate prices- a consequence of high demand and limited supply. The situation is made worse by meddling local authorities who fix universal fare prices, rather than leaving it up to consumers to decide how much to pay and for what quality of service.

As is so often the case with over-regulation, those who suffer the most are the poorer members of society. While government and council employees enjoy subsidised travel, the elderly and those unable to afford their own transport who rely upon taxis as a mode of transport will continue to be overcharged and undersupplied.

Read the full article here: