EDITORIAL: Cab companies cave to competition

Competition is ruthless and relentless in driving advancement and efficiency. As a result, Southern Nevada transit is about to change for the better.

Last month, the valley's behemoth taxicab industry and the Nevada Taxicab Authority finally realized the futility of their yearlong fight against nimbler transportation network companies, throughout which they demanded that smartphone-based upstarts adopt the outdated business model of traditional motor carriers — complete with higher costs and slower service. When the Nevada Legislature cleared the way for Uber and Lyft to operate across the state, taxi companies knew they couldn't compete. They were the ones that needed to change.

And so on July 23, the authority approved sweeping taxi deregulation, setting aside many rules that never should have been imposed to begin with and creating an environment that will give valley residents in need of rides better service than they've ever had before.

Competition won.

For the uninitiated, Uber and Lyft connect passengers to drivers with an app. Drivers work as contractors and use their own cars. They drive whenever they want and work as their own dispatcher. Contrast that with cabdrivers, employees who work at the direction of a central office and often are restricted to certain times and areas because of burdensome licensing standards.

As reported by the Review-Journal's Richard N. Velotta, the Taxicab Authority board voted 4-0 to eliminate time and geographic restrictions on medallions — the government-awarded and strictly limited credential that allows a cab to operate — and convert them to around-the-clock use in any location across the county.

In addition, the board approved 20 new medallions per cab company, half for use immediately and half to take effect Nov. 1. That move will allow the valley's 16 cab companies to put up to 320 more cabs on the streets. Within a few months, cab companies will have the flexibility to put more drivers on the road when higher demand is anticipated. That flexibility is precisely what makes the highly responsive Uber and Lyft business model work.

The Taxicab Authority should go further. Instead of eliminating medallion restrictions, it should eliminate medallions, giving cab companies complete control of their fleet size and operations. Then the authority should go away. It's primary function is limiting competition and providing cab companies with protection from each other and outsiders. It's a big reason why Las Vegas has one of the highest taxi fare structures in the country.

Competition works. Let's have even more of it.