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Yeah; Uber had a unique opportunity because the taxi business was stuck in the 20th century and had a bad case of regulatory capture as a result. That said, in
by exelius 11y ago
Yeah; Uber had a unique opportunity because the taxi business was stuck in the 20th century and had a bad case of regulatory capture as a result. That said, in Uber's more "mature" markets you're starting to see a lot of the problems that caused the taxi business to regulate in the first place: too many drivers, no way to guarantee steady revenue as a driver, etc.
- hueving 11y agoThe purpose of the industry isn't to provide steady revenue to drivers. That's a non issue that will be solved by drivers quitting when the price gets too low.
- pbreit 11y agoThat's not quite true. Regulation frequently aims to smooth out the booms and busts and I would argue that happens in the current taxi industry.
- BurningFrog 11y agoRegulation is marketed by nice sounding goals like that, while it is actually motivated by protecting the established players and keeping competition out.
- Daishiman 11y agoYes, all regulations, all the time, and so much evidence to boot!
- pbreit 11y agoEither way, it smoothes out the booms and busts.
- hueving 11y agoThere isn't really any correlation between smoothness of booms and busts and regulation. Quite frequently regulation causes massive swings because it prevents the market from pricing risk correctly (e.g. The affordable housing act leading to banks not needing to care about mortgage payback risk).