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Uber versus taxi: A driver’s eye view

Ridesharing services like Uber and Lyft have disrupted taxi markets in many countries around the world. This column examines the differences between rideshare services and taxis from the driver’s point of view. It argues that the crucial difference comes down to the need to lease a medallion to drive a taxi versus the pro rata fee that rideshare services charge. Many high-volume drivers display ‘lease aversion’, opting for the pro rata rideshare service despite the lease model for taxis offering a better return.
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