Always Look on the Bright Side of Life

A red light camera company is facing bankruptcy because of reduced driving, and reduced fines, during the lock-down.

I am amused:

Things change. And the stuff that used to work just doesn't anymore. We've covered a lot of this over the years, mainly focusing on how the rise of the internet was greeted with rent-seeking and protectionist policies meant to extend the upper hand that incumbent industries had enjoyed for years.

………

We are again being asked to shed a tear for a law enforcement-adjacent industry. Social distancing and sheltering-in-place in response to the coronavirus has led to a downturn in driving. And if there's fewer drivers on the road, proxy cops are seeing their revenue streams dry up.

Redflex, an Australian company that operates "traffic safety programs" in roughly 100 US and Canadian cities, warned that less traffic and suspended construction amid the pandemic will be a stress on its balance sheet.

"Approximately 15% of group revenue is dependent on volume-based contracts," the company said in a regulatory filing Monday first spotted by The Wall Street Journal, hinting at its business line that includes enforcement cameras. "We anticipate our revenue from these contracts will be impacted broadly in line with the reduction in traffic volumes as well as the duration of the disruption."

Yeah, that's a real shame. It's too bad a company that engaged in bribery to grab market share won't be able to weather this unexpected downturn in questionably-obtained income. There are several competitors in the crowded "worst traffic cam ever" field, but Redflex did everything it could to stay ahead of the pack. This behavior resulted in other unexpected downturns, like refunding millions of dollars of tickets in multiple locations due to the tech's inability to do the little things… like accurately judge vehicle speed.

Here's hoping that these folks end up in the poor house.