Several cities recently opened their taxi markets. In 1994, Freedom Cabs became Denver's first new cab company in 50 years. Today, it employs nearly 100 people and provides service to the historically under-served minority community. In Indianapolis, six months after opening entry into its taxi market, there was a nearly seven percent increase in the number of cabs. Nearly all the new taxi owners are former drivers who had long wanted a chance to own their own business.
Cabs are safer with all companies passing police background checks and enhanced safety inspections.
Though control appears to be in the hands of government, it really rests in the hands of existing cartel companies. The entrenched companies can examine an aspiring entrepreneur's application, which identify new market niches. Thus, an old business can that idea and provide the very service the applicant was using to gain market entry. With the standard filled, there is no need for a new company. It should come as no surprise that since the public convenience and necessity standard was enacted, not a single new cab company has entered Portland's taxicab market.