Uber founder: Travis Kalanick explains how the New York taxi system is legalized corruption

When Uber rolled into New York, the driver was getting a 12 hour shift, seven days a week. But there are two 12 hour shifts. Each of those drivers was paying $40,000 a year to rent a car for half time. Which means the guy who had the license, whose grandpa got it for free, okay, alright. The guy who has a license, it for free, is getting $80,000 a year renting a car to a taxi driver. And that taxi driver who's paying $40,000 a year for 12 hours a day, he's renting a car for $40,000 a year for that privilege, he gets to be impoverished. That is the taxi system. And they are over 100 years. So it's like a Stockholm syndrome or regulatory capture is so freaking tight that the regulators, the difference between the regulator and the taxi company is almost indistinguishable. It had to be jarring for you to walk into a system you just described, you're just describing corruption. That is legalized corruption. So remember it, the taxi system? It is a government condoned cartel that outlaws competition. But it had to be jarring. Come in with a better product at a cheaper price that customers love. 1,000 never taken a since I... you caught me in 2010. Up in you've kept me. I've never opened up another app. Like 16 however long it's been. It's just like I'm choosing to do that. Governments are like, this legalized corruption is good. You, Travis, get the hell out. So what happens is being anti competitive is illegal in the United States unless you get a government official to do it for you, then it's legal. Pretty interesting.