Unleashing Private Transit

If we are serious about solving transit problems, we should eliminate public transit franchises, argues James E. Moore.

1 minute read

April 19, 2005, 7:00 AM PDT

"As matters now stand, public transit agencies are franchises: They have an exclusive right to provide service in their communities. It is illegal for private providers to enter the market for transit services and compete against a franchise operator. In truth, though, transportation is just another service. A public franchise for bus or rail service is no more necessary or natural than a public franchise for selling shampoo.

...Private companies that sell goods or services that no one wants to buy fail. But highly subsidized public transportation franchises can eschew discipline and disrespect the market they're supposed to serve.

...There is nothing inherently unprofitable, however, about the business of moving paying customers from place to place. Private transit thrives in major cities worldwide."

Thanks to Chris Steins

FULL STORY: Take the Boot Off Private Transit

Sunday, April 17, 2005 in The Los Angeles Times

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