There is an interesting story going on in the taxi industry, although none of the companies are public. The taxi industry is regulated by municipalities who issues plates and then drivers rent the plate to work. Those that own the plates charge rental of the plate and franchising fees for name of company and connection to the routing center. Within this heavily regulated business comes Uber who does everything by its app or mobile phone system. This means the players in the regulated system are fighting the new, how it works out in the end is anyone best guess except the cost f the rental plates at the taxi service is likely to significantly fall.

Linking to dividend paying stocks, in all industries that are regulated, someone is always offering an alternative. Often those alternatives are in left field (or far from the action) but if the correct conditions begin to allow expansion, the gateway is open. Thus you can see the near monopoly businesses fighting to save their margins and suggesting the public is better served by the existing system. It is easier to see in some industries such as the taxi one, but as an investor you need to pay attention to the alternatives of the companies you are investing in.

There are more questions than answers, till the next time – to raising questions.