To temper this slightly, there are ways to artificially restrict supply without involving financial instruments. Just have a regular permitting/lisence system.
> I can only assume taxi companies must have lowered their prices to compete by now, but I'm not sure
Doubtful. “Fares“ were strictly regulated by the regulators.
With rideshare competition, taxis have become a lot less likely to moan that your ride is too short, or trying to charge extra just because there’s a ton of demand at that time.
