There's been so much corruption and so much cronyism in the taxi industry and so much regulatory capture, that if you ask for permission upfront for something that's already legal, you'll never get it.

In this quote, Travis Kalanick, the co-founder of Uber, addresses the pervasive issues of corruption, cronyism, and regulatory capture within the taxi industry. Kalanick highlights how entrenched interests within the industry have influenced regulations, making it difficult for new or disruptive businesses to operate legally. His point is that when attempting to introduce something that's already legal, such as a new business model or technology, asking for permission upfront from the authorities controlled by these interests will likely result in refusal due to the influence of the status quo.

The origin of this statement comes from Kalanick's experience in trying to introduce Uber as an alternative to traditional taxis, which faced significant resistance from established players and government regulators. He criticizes the regulatory environment, where long-standing industry players have often manipulated rules and regulations to maintain their market dominance, preventing innovation. This reflects Kalanick’s frustration with a system where regulation becomes a tool for those already in power to stifle competition.

By mentioning regulatory capture, Kalanick refers to a situation where government agencies tasked with overseeing industries become influenced or controlled by the very industries they are supposed to regulate. In the context of Uber, Kalanick is pointing out that the taxi industry has successfully created an environment where new entrants are systematically blocked, making it harder for innovative solutions like his to be embraced.

Ultimately, Kalanick’s quote serves as a critique of the existing regulatory systems that, in his view, protect traditional industries through corruption and cronyism. It underscores the challenges faced by disruptive innovators who often find themselves at odds with established systems designed to protect incumbents. His statement advocates for a shift in how regulations are applied, suggesting that permission to operate should be granted based on the legality and merit of a business, rather than the influence of existing players.