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How do you regulate Uber to not take the mindshare of ride sharing services so it doesn't become a monopoly? The problem with Uber, and Facebook, and Twitter,
by zanny 11y ago
How do you regulate Uber to not take the mindshare of ride sharing services so it doesn't become a monopoly?
The problem with Uber, and Facebook, and Twitter, etc is that to have competition you need users, and to have users you need mindshare, and whoever is on top always has the mindshare.
Its also a modern phenomenon. You could Xerox it while competing copiers could effectively compete in the market by making a better product for value and getting fewer sales as a result of less marketing and brand recognition than what Xerox had, whose customers than pay an advertising and brand premium. Same with kleenex, or even search. The dominance of a competitor does not impair the competitions ability to compete unless those competitors use force of law to break a free market.
With Uber and Lyft, the more dominant Uber is, the less likely Lyft can get drivers and thus the less likely Lyft can get customers because Uber has all the customers and drivers. Its the same problem you have with operating systems, where you need the software users want, but the software also needs users to justify the investment, which is how Microsoft can continue to dominate with a demonstrably inferior product.
I'd love for there to be a way to break up mindshare monopolies, but destroying Uber through tax regulation and killing an entire fledgling industry is anything but a solution.