> Is that really the taxi's "fault" though? I mean it is in everyones best interest to get paid the most.
In a competitive market, no, you're right. But that's a self-solving problem because customers will select the option which gets them there the fastest for the least money. The problem is customer-abusive behavior, which is a hallmark of a captive market; when a consumer has no viable alternatives, they basically have to put up with being scammed, shaken down, and otherwise abused to the limit that they can tolerate (see also: regional monopolies in last-mile internet service).
The issue at hand is fundamentally the lack of competition, which is enforced through government action. If you're going to maintain a state-granted monopoly, then you're going to need to be subject to state-imposed restrictions on how you can use that monopoly.
Of course, even making it illegal doesn't seem to be stopping taxis from doing it.
In a competitive market, no, you're right. But that's a self-solving problem because customers will select the option which gets them there the fastest for the least money. The problem is customer-abusive behavior, which is a hallmark of a captive market; when a consumer has no viable alternatives, they basically have to put up with being scammed, shaken down, and otherwise abused to the limit that they can tolerate (see also: regional monopolies in last-mile internet service).
The issue at hand is fundamentally the lack of competition, which is enforced through government action. If you're going to maintain a state-granted monopoly, then you're going to need to be subject to state-imposed restrictions on how you can use that monopoly.
Of course, even making it illegal doesn't seem to be stopping taxis from doing it.