Early this morning Peter Cheney of the Globe and Mail published an article called: How Uber is ending the dirty dealings behind Toronto’s cab business.
And I highly recommend you read it. He’s been investigating this industry for decades.
Though the article is specific to Toronto, I know that there are middle people and archaic policies governing the taxi industries in many other cities around the world.
Here it revolves around taxi licenses issued by the city (known as “plates”), which are expensive and almost impossible to get. Last year the average price of a plate was $118,235 (2014).
The way it works is that people – typically non-drivers – buy/inherit/get these plates and then charge rent on them to drivers who want to use them. The result is