Do We Fear Markets Won't Work? - Page 2
Liberalize Public Transit
Slug lines show us that some drivers will become part-time cab drivers if it is beneficial to them. We need not fear partial liberalization of transit services because we have seen private provision work. Unfortunately, governments nation wide legislate against any entrepreneurial firm or citizen offering transportation services without obtaining an expensive license and meeting numerous regulations. (Slug lines are legal only because no money changes hands.)
I can imagine - if the government would allow it - an iPhone app where those needing a ride put out a request to go from A to B. Willing drivers could then immediately bid a price for the trip. Some may just do it to earn extra money. Or, if the driver is also planning to go to location B, he might charge the rider less. Both parties benefit and less transit services are necessary. In the era of bursting transit budgets, it's a win-win-win.