The jitney experience suggests, and a closer analysis of the modern ride-for-hire industry confirms, that only the latter form regulation is truly justified when it comes to regulating both app-based ridesharing and taxicabs. Health and safety regulation, on the other hand, addresses externalities and lack of information. Economic regulation is designed to handle the market inefficiencies associated with the existence of natural monopolies in the provision of some goods. Section 5353 of the Public Utilities Code is asended to read : 5353. A careful examination of the jitney-era regulations reveals a distinction that is important in modern scholarship on regulation: the distinction between economic and "health and safety" regulation. Inondment 3 on page 2, strike out lires 16 and 17 and lasert : SEC. The jitney experience in Los Angeles offers a number of enlightening insights into the current regulatory debate over app-based ridesharing, especially given that CPUC regulations have apparently done little to resolve the debate at the local level. Despite the apparent willingness of local regulators in Los Angeles to allow the strange little rideshare industry to develop, the railway industry heads in Los Angeles eventually succeeded in compelling them to shut it down through the enactment of extremely restrictive - and arguably economically unjustified - regulations. Called the jitneys, these makeshift ride-for-hire services were explosively popular, and as with app-based rideshares today, they soon drew the ire of the transportation industry establishment. Between 19, first in Los Angeles and then elsewhere throughout the United States, bored and unemployed men scraped together what little savings they had and obtained automobiles with the intent of cruising the streets in search of anyone in need of a ride and willing to pay a five-cent fee. The emergence of "app-based ridesharing," and the taxicab industry's frustrated response towards it, is reminiscent of a curiously similar and somewhat overlooked episode in California's - and the country's - early automotive history.
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