Why Taxi costs are so expensive in Dubai?

1. Like driver this unskilled labor income is very low
2. Oil price in Dubai is very cheap
3. motors Price in Dubai is very cheap

Almost all the factors of production that provide this service are cheap.
But Taxi cost is very high, almost 4 times that of china.
all the factors of production cheaper than china, but taxi costs are higher than china, that’s unreasonable!

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That means:
1. There is a implicit cost: large compliance cost
2. Not opened taxi market lead to limited supply volume, lead to imperfectly competitive market

so, for consumers, you need to pay higher costs.

From a long-term perspective, this is not conducive to the evolution, progression, and development of the ecosystem. In an environment without sufficient competition, the rate of evolution within the ecosystem will be extremely slow.

On a macro level, this results in low market vitality, with products and services within the ecosystem becoming rigid, stagnant, and outdated. Innovation and advanced development are difficult to emerge.

On a micro level, consumers have to pay extremely high costs but receive extremely poor services in return.

More expansive derivative thoughts:

1. This is why a project becomes inefficient once it falls into a bureaucratic system.
2. Planned economies are destined to fail; market economies are the inevitable choice.