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Your posts have been very insightful. So I wonder if you think Uber will functionally have maximum utility for this market? It will be as efficient as possible
by merpnderp 11y ago
Your posts have been very insightful. So I wonder if you think Uber will functionally have maximum utility for this market? It will be as efficient as possible without some major change in the business? And won't that be a great thing for people needing cheap rides to get around town, especially in places underserved by public transportation? This good quite probably outweighing the reduction loss of wages to taxi drivers. The way I envision it is the wages to the taxi drivers have been reallocated to provide dirt cheap transportation to the public at large, multiplying the utility of those wages. But I haven't seen the inside of an economics classroom since high school :)
- akamaka 11y agoThe part that excites me the most is the potential for reducing car ownership. The utlization rate for both cars and parking spaces is extremely low (something like 5% for cars and 15% for parking spaces), so it's not hard to imagine hundreds of billions of dollars in savings. As for low wages for the drivers, I think that won't be a problem that disappears on its own, but I'm strongly against solving social problems by trying to keep wages up artificially.