Friday, May 20, 2011

Hramblings: The search for rational pricing continues...

Recently there was a push to raise taxi meter rates in Ann Arbor and we're planning to be out of town for about two weeks. One of the exercises we go through is whether to hire a limo to take us to the airport or drive ourselves. There are now multiple ways to get to DTW from private limo to shared van rides. None of these options can touch driving there and leaving the car for trips upwards of 14 days.

The Michigan Flyer bus is cheaper at $50 for two people roundtrip plus $2/day to park. This works out to 7 days breaking even. BUT, the schedule has a bus departing every 90-120 minutes. It could be a long wait for a ride home. I suppose you take the bus there and a cab back, but that pushes the break even to 11 days again.

Short of having a friend drop you off and pick you up, 2-3 gallons of gas (even at $4/gallon) and $8/day to park wins. Seems like a market failure to me.



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