That's like saying "There is no oligopoly in the 4 banks in...

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whartanto

358 Posts.

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08/03/16

14:06

Post #: 17217246
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Originally posted by Mongrel ↑

Theres nothing monopolistic about CAB. If you don't want to use them simple, pay cash. Hardly monopoly behaviour!

CAB will more than survive for a couple of very good reasons:

> further to YD's note, once Uber is legalised its costs will increase dramatically. Govt's don't like anything happening without regulatory oversight. The out of proportion bad dudes in Uber will force Uber drivers to get all the clearances, licences, tests, etc that taxi drivers now pay for. Costs will go up similar to those of SCV drivers. SCV have been around for decades, and whilst they essentially compete with taxis, they aren't a threat.

>The vast majority of CAB users in taxis are business and govt peeps. The accountability of CAB cannot be challenged by the pre-pay protocol / floating price of Uber. Of course there is some use, but the initial interest has been reducing as accountants demand more accountability, particularly in the larger companies.

> CAB are building other EFTPOS businesses, though I reckon not fast enough. These will see an ongoing profitable business regardless of the limits govt's put on CAB's charge rate.

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That's like saying "There is no oligopoly in the 4 banks in Australia, if you don't like excessive bank fees, just put your money under your mattress. Hardly oligopoly behaviour!".

CAB Price at posting: $3.34 Sentiment: Sell Disclosure: Not Held
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