Saturday, August 25, 2012

Markets in Everything: Private Online DMV in CA

"Cartagz is licensed and bonded with the California Department of Motor Vehicles and we are officially authorized to perform a variety of DMV related transactions. Official CA DMV license stickers and registration cards are issued directly from our central office."

"Each month, thousands of Californians benefit from Cartagz.com’s higher level of customer service and efficiency. As California’s leading vehicle registration service, Cartagz.com helps people save time and avoid trips to the DMV through this unique and easy to use online service." 

Cartagz has experienced phenomenal growth since starting four years ago, with revenues growing from $137,000 in 2008 to more than $14 million last year.  

19 Comments:

At 8/25/2012 8:58 PM, Blogger Larry Sheldon said...

With exception of my Learner's Permit and my first driver's license, I don't think I was ever in a DMV office when I lived in Southern California.

I always went to the ACoSC office nearest me.

 
At 8/25/2012 9:02 PM, Blogger Scott Drum said...

Yes, but do their employees belong to the union?

 
At 8/25/2012 9:08 PM, OpenID wcvarones said...

The DMV is for poor people.

Normal people renew online or use AAA.

 
At 8/25/2012 9:15 PM, Blogger Dick King said...

wcvarones , why can't a poor person renew online, given that there are computers in libraries these days?

-dk

 
At 8/25/2012 9:16 PM, Blogger arbitrage789 said...

Do they issue licenses to illegals?

 
At 8/25/2012 9:18 PM, Blogger sethstorm said...

This comment has been removed by the author.

 
At 8/25/2012 9:18 PM, Blogger sethstorm said...

Unlike this "DMV", dealing with the real one doesn't incur privacy violations as a result of any data leaving California (much less the US) or any other privacy-enhanced jurisdictions within the US offering the same level of protection.

Hopefully their license does not get renewed.

 
At 8/25/2012 9:31 PM, Blogger Jon Murphy said...

One thing I've noticed, both in my own town and around the nation, is more and more government services are becoming privatized as budgets are squeezed. Here in Concord, our trash/recyclable collection and sewer management are all privatized. This is good because it has allowed the town to focus on essential elements (police, fire, schools) by increasing their budgets while lowering our taxes at the same time.

 
At 8/25/2012 9:41 PM, Blogger BigFire said...

RE: WCVARONES

AAA does NOT do driver license replacement. I lost half of my weight and need to get an updated picture on my license. AAA do not do that. I have to make 2 trips to DMV, since the first time around, my picture did not make it up to DMV HQ electronically.

 
At 8/26/2012 12:36 AM, Blogger Hydra said...

it has allowed the town to focus on essential elements (police, fire, schools) by increasing their budgets while lowering our taxes at the same time.

================================

Nonsense.

What is the total cost under the new system compared with the total costs under the old?


Total costs = Production Costs + Externals Costs + Government Costs.



People here ahve beat me up over this, but you just made my case.


If it is truye that total costs are lower, then youare correct, otherwise, not.

Example:

In my area governmeent privatized trash collection. There were several competing services. All good, right?

But then, one of the services suffered an arson in which all of their trash trucks were burned.

You know, free market and all of that stuff.

Government costs increased as they had to investigate , and ultimately prosecute the problem.

The end result was a virtual mponopoly, after the perpetrator was banned, and higher total costs all around.




 
At 8/26/2012 3:42 AM, Blogger Ron H. said...

"Unlike this "DMV", dealing with the real one doesn't incur privacy violations as a result of any data leaving California (much less the US) or any other privacy-enhanced jurisdictions within the US offering the same level of protection."

You must be kidding. Where do you think all those junk mailers got your address? Are you really not aware that state DMVs sell mailing lists to marketers?

 
At 8/26/2012 4:02 AM, Blogger Ron H. said...

"In my area governmeent privatized trash collection. There were several competing services. All good, right?

But then, one of the services suffered an arson in which all of their trash trucks were burned.

You know, free market and all of that stuff.

Government costs increased as they had to investigate , and ultimately prosecute the problem.
"

Was that government cost unique to a criminal investigation involving a private business? What if the city's trash trucks had all been burned?

"The end result was a virtual mponopoly, after the perpetrator was banned, and higher total costs all around."

Wait. Is city trash collection not a monopoly?

Millions of people could counter yours with examples of privatizing trash collection that resulted in better service and lower cost.

You haven't made an argument against privitization or in favor of government trash collection.

 
At 8/26/2012 4:08 AM, Blogger Ron H. said...

"What is the total cost under the new system compared with the total costs under the old?"

Are you seriously questioning the fact that private services are almost always better and cheaper than government services?

Why do you think Jon would post that comment if he didn't know what he was talking about? Not everyone is like you, you know.

 
At 8/26/2012 8:42 AM, Blogger Ed R said...

The state of FLA has an excellent state-sponsored website to take care of all the DMV-related activities. About 20 seconds to renew your tags or driver's license.

 
At 8/26/2012 1:29 PM, Blogger crj said...

Of course I understand the obvious convenience advantages to have such an online service - but I think it will lead to security lapses. And given how many government services stem from ID like a Drivers Licences - this is a "penny-wise, pound foolish" privatization effort. Mark my words it will catch up to you. Yes it is a PITA to have to go down and stand in line but it has the advantage of not allowing someone to impersonate you or carry out a mis-representation. Unless the NEW system has a number of verification protocols that "red flag/kick-out" obvious risks. But even then online scams are easy to perpetrate and it is often when they must appear at a "brick&mortar" location that the problem is exposed.

 
At 8/26/2012 4:42 PM, Blogger Jon Murphy said...

What is the total cost under the new system compared with the total costs under the old?

I don't have exact numbers for you. I know the town was able to save a considerable amount of money (see my earlier comment on police/fire/schools). Residents are saving money, too. The tax burden is less and the new system is "pay-as-you-thow", ie you only pay for the number of bags you put out. If you don't want to pay at all, you don't put bags out.

Basically, this has been a huge win-win for the city.

 
At 8/26/2012 5:21 PM, Blogger Ron H. said...

"Of course I understand the obvious convenience advantages to have such an online service - but I think it will lead to security lapses. And given how many government services stem from ID like a Drivers Licences - this is a "penny-wise, pound foolish" privatization effort. Mark my words it will catch up to you. Yes it is a PITA to have to go down and stand in line but it has the advantage of not allowing someone to impersonate you or carry out a mis-representation. Unless the NEW system has a number of verification protocols that "red flag/kick-out" obvious risks. But even then online scams are easy to perpetrate and it is often when they must appear at a "brick&mortar" location that the problem is exposed."

This private system is little different from online DMV services already available in many states, as well as at auto club offices.

Is your concern with online transactions or with the idea of a private company having access to your personal information?

 
At 8/26/2012 5:23 PM, Blogger Ron H. said...

"The tax burden is less and the new system is "pay-as-you-thow", ie you only pay for the number of bags you put out. If you don't want to pay at all, you don't put bags out."

Or better yet, put them with your neighbors bags. :)

 
At 8/26/2012 5:55 PM, Blogger Jon Murphy said...

Or better yet, put them with your neighbors bags. :)

Only if you want to make the next block-party awkward :-)

 

Post a Comment

Links to this post:

Create a Link

<< Home