The evolution of the motorized taxi industry in Vancouver is examined with respect to regulatory changes affecting competition. After initial laissez-faire policy, the industry was tightly regulated after 1946. As newer technologies emerged, newer types of services emerged and the demands of the public evolved. Vancouver remains one of the few large Canadian cities to resist increased competition. The protected taxi industry does not want changes pointing to congestion as a justification. The theory on externalities is examined with respect to congestion and information asymmetries. The paper document the most recent developments
