Tuesday, January 27, 2015

The California Flounder in action


Pacific Standard: They did everything that Uber and its CEO Travis Kalanick didn't do.
Night School aimed to provide late-night transit service between San Francisco and Oakland, supplementing the public bus and train services that provide intermittent, if any, service after midnight. The company would use the public school buses that sit unused in parking lots on the weekends, and charge $8 per ride or $15-20 per month for unlimited service (the price points fluctuated).

The school buses seemed a little twee, but the strategy was clear and smart. And it struck a nerve. Last May, Night School received a glut of positive media coverage ahead of its imminent launch. Two weeks later, it was postponed—the California Public Utilities Commission (CPUC) had become involved. The state agency, a target of much start-up ire, had previously attempted to fine and regulate Uber, Lyft, Sidecar, and others. At the end of 2014, Night School announced that it was no longer postponing the project—the founders were killing it.

Why were some private transit start-ups able not just to survive but thrive under current regulatory standards while Night School collapsed? And what does that mean for the future of start-up business in California?

This was basically some political crony at the California Public Utilities Commission. Corruption, basic and simple, corruption in Jerry Brown's party. He should be ashamed, the CPUC has turned Jerry Brown into a coward.  Californian's should all refuse to pay taxes for one year as punishment.

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