Chicago lawmakers are stifling the innovation and growth of one of the fastest-growing parts of the modern econom
Chicago, Illinois (PRWEB) June 23, 2016
The Chicago City Council yesterday passed new regulations on peer-to-peer services including ride-sharing companies Uber and Lyft, and short-term rental company Airbnb. Under the new regulations, Uber and Lyft drivers will need a chauffeur’s license and be subjected to vehicle inspections. Airbnb services will now face increased taxes and fees, including a 17.4 percent hotel tax.
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“The Chicago City Council’s approval of increased regulations on peer-to-peer economy services such as Airbnb and Uber are a loss for consumers and a win for entrenched, well-connected lobbyist groups, including the owners of taxicab companies and hotel chains.
“By increasing the regulatory burdens and costs for everyday people to capture value from an otherwise idle car or an empty room in their home, Chicago lawmakers are stifling the innovation and growth of one of the fastest-growing parts of the modern economy.”
Managing Editor, Budget & Tax News
Research Fellow, The Heartland Institute
“Ridesharing services like Uber and Lyft have opened up new transportation options that are reliable, safe, and affordable and that serve areas of Chicago many cab companies often refuse to serve. Instead of increasing regulations on the rideshare industry, the Chicago City Council should remove the unnecessary regulations from traditional taxicab services that make them less competitive.”
Senior Policy Analyst
The Heartland Institute
“The City of Chicago’s decision to pass regulations against ridesharing companies such as Uber and Lyft is just further proof many city officials care more about lobbyists than they do their own constituents. “Ridesharing services are wildly popular for a reason: They are efficient, effective, and cheap. By forcing Uber, Lyft, and other services to comply with regulations that will provide no benefits for consumers, Chicago is choosing to unnecessarily drive up costs. These regulations aren’t about safety, they are all about power and keeping millionaire taxi company owners happy at the expense of everyday Chicagoans.
“The City Council’s regulations, which were watered-down in a last-minute attempt to keep ridesharing businesses from leaving, could have been much worse for Uber and Lyft, but unnecessary costs are still going to be imposed that will harm consumers.”
The Heartland Institute
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