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I never said Uber was operating in free market or that they wouldn't turn around and become rent seekers themselves (as they already have), but the reality is,

by asift 11y ago

I never said Uber was operating in free market or that they wouldn't turn around and become rent seekers themselves (as they already have), but the reality is, Uber is subject to more market forces than yellow taxis were/are. Those market forces--not government forces--are what has enabled companies like Uber to improve on the status quo and deliver more value to consumers. Also, how do you suppose Uber would become predacious monopoly? Certainly not by being subject to the relentless competition of new market entrants seeking to take their customers on a daily basis. Predacious monopolies (e.g., cable companies) exist in markets where they are heavily shielded from competition. When competitors arrive, their behavior changes.

TeMPOraL 11y ago
> Also, how do you suppose Uber would become predacious monopoly? In a way Google has de-facto search engine monopoly - by offering the best service that's hard to replicate because of scale effects, and by being a globally recognizable brand. Add to that Uber's eagerness to actively sabotage competition by means literally taken out of spy movies (burner phones and CCs, really?), and I can see them holding a monopoly for a while once they get it. (And "for a while" is enough; Uber is perfectly aware that self-driving cars are coming, and is in fact preparing for it.)
- asift 11y ago
  I said predacious monopoly. There is an important distinction between a company with monopoly status because they provide the highest value among options freely chosen by consumers and a company with monopoly status because they are benefactors of anti-competitive governmental policies. Google is dominant in US search, but they aren't really a monopoly. They have formidable competitors who hold nearly 1/3 of the US market. Of Google's service got really bad,I can switch my default search engine to a respectable competitor in a matter of seconds. I certainly wasn't implying that Uber doesn't benefit from network effects and can't establish long-term dominance like Google, but if they are solely a consumer chosen "monopoly", there really isn't anything to fear. The concern is that Uber will do as taxi companies did before them and lobby for anti-competitive regulatory favors. I expect this will be the case, but this predacious form of monopoly cannot be achieved without the help of governmental regulation.
  - kuschku 11y ago
    A user-chosen monopoly is still bad. For example, for the drivers. They have no choice where to work – uber or jobless. It’s also bad if uber abuses that to gain power in another market.

by asift 11y ago

TeMPOraL 11y ago

> Also, how do you suppose Uber would become predacious monopoly? In a way Google has de-facto search engine monopoly - by offering the best service that's hard to replicate because of scale effects, and by being a globally recognizable brand. Add to that Uber's eagerness to actively sabotage competition by means literally taken out of spy movies (burner phones and CCs, really?), and I can see them holding a monopoly for a while once they get it. (And "for a while" is enough; Uber is perfectly aware that self-driving cars are coming, and is in fact preparing for it.)

asift 11y ago
I said predacious monopoly. There is an important distinction between a company with monopoly status because they provide the highest value among options freely chosen by consumers and a company with monopoly status because they are benefactors of anti-competitive governmental policies. Google is dominant in US search, but they aren't really a monopoly. They have formidable competitors who hold nearly 1/3 of the US market. Of Google's service got really bad,I can switch my default search engine to a respectable competitor in a matter of seconds. I certainly wasn't implying that Uber doesn't benefit from network effects and can't establish long-term dominance like Google, but if they are solely a consumer chosen "monopoly", there really isn't anything to fear. The concern is that Uber will do as taxi companies did before them and lobby for anti-competitive regulatory favors. I expect this will be the case, but this predacious form of monopoly cannot be achieved without the help of governmental regulation.
- kuschku 11y ago
  A user-chosen monopoly is still bad. For example, for the drivers. They have no choice where to work – uber or jobless. It’s also bad if uber abuses that to gain power in another market.