Congestion pricing will likely foster a mix of commercial transit alternatives to serve those who find automobile usage too costly. Regulatory and other barriers, however, currently stand in the way of expanded private transit services in Southern California. California communities would benefit from expanded commercial transit options, especially as congestion tolls are introduced. With few exceptions these transit options are either heavily regulated or barred in Southern California.
Deregulation is necessary to increase the supply of commercial transit services.
Experiences with taxi deregulation in other U.S. cities show that customers are usually rewarded with more travel options and improved services, at roughly the same fares as before. Local, state, and federal barriers currently impede expansion of commercial transit options. These should be repealed. Regulatory reforms are not the only way to stimulate commercial transit. One key deterrent to serving non airport destinations with shuttle type services is the prevalence of free or subsidized parking throughout the Los Angeles basin.