If someone tries to open another sandwich shop on San Benito
Street, would city council members consider if it’s a good business
decision when deciding whether to OK a permit? Would they weigh
the
”
need
”
for another one? Would they disregard the applicant’s contention
that her sandwiches would be less expensive and more enjoyable than
everyone else’s?
Of course not. This isn’t Russia.
If someone tries to open another sandwich shop on San Benito Street, would city council members consider if it’s a good business decision when deciding whether to OK a permit? Would they weigh the “need” for another one? Would they disregard the applicant’s contention that her sandwiches would be less expensive and more enjoyable than everyone else’s?
Of course not. This isn’t Russia.
Although they weren’t considering a restaurant, Councilman Doug Emerson and Councilwoman Pauline Valdivia followed the same line of irrationality last week by opposing Yellow Cab Co.’s application to do business here and compete against Hollister Taxi.
Thankfully, a majority of council members – Victor Gomez, Ray Friend and Eugenia Sanchez – saw the light of capitalism and OK’d the permit. It means the Monterey-based outfit will get the chance to thrive in Hollister while providing local citizens a choice.
Yellow Cab might improve service for the community. It might not.
Yellow Cab might run Hollister Taxi out of business. It might not.
That is how capitalism works. The free market should decide how many and which taxi businesses we need in Hollister. The free market should decide if Yellow Cab Co. ultimately succeeds or fails, if Hollister Taxi thrives or flutters. Business owners who are willing to take a risk, who work hard and provide a desired service – they’re the people who should drive these private-sector outcomes.
Not government officials.
In this case, Emerson and Valdivia overstepped their intended authority in considering the city’s ordinance for new cab businesses. It requires a report by the police chief – on such potential impacts as traffic and safety – before an ultimate approval by the council. In his report to council members, Police Chief Jeff Miller concluded he found that nothing would preclude Yellow Cab from getting a taxi license.
Why in the world then would Emerson and Valdivia – both of whom insisted they also somehow support competition – oppose this business competing in Hollister? Either they vastly misunderstand their roles as government leaders or they simply buckled to outside pressures.
While Emerson explained that he opposed the permit because approving it would mean he believes there is a “need” for another taxi business in Hollister, Valdivia reasoned that city officials should allow Hollister Taxi to develop as a business.
Valdivia herself, however, pointed out that Hollister Taxi has been operating for 26 years. First off, is that not enough time to develop a business that caters successfully to the local customers’ needs? Second, and most important, what good does it do for the community to encourage a monopoly, especially when another business is promising lower prices and better service?
