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Uber is getting a lot of its "efficiency" over regular cab companies by side-stepping regulatory burdens. People are riding uber because it's cheaper or they c

Uber is getting a lot of its "efficiency" over regular cab companies by side-stepping regulatory burdens. People are riding uber because it's cheaper or they can deliver a better service at the same price point because they have the comparative advantage of lower regulatory burdens. You can't infer from this that people are voting with their heart. They are voting with their wallet, which is to say they are existing within the framework of capitalism whilst at the same time Uber exist outside parts of the framework for taxis. I do agree there are bigger problems, but I don't think that precludes criticising these companies.

l33tbro 10y ago
To add to your points, Uber is currently operating at a loss (1) due having so much runway. Once they've smited your local cab company, do you really think they're going to maintain bargain fares? (1) http://www.businessinsider.com.au/uber-2016-losses-2016-8 http://www.businessinsider.com.au/uber-2016-losses-2016-8
- branchless 10y ago
  Yeah I kind left that out as it's their choice how they spread their gains and losses over the medium term. I agree it's likely a monopoly play but it doesn't feed straight into my point about their "efficiency" coming from a non-level playing field. One can debate if taxis should be registered or not however those stating that uber is more efficient are not comparing like for like. Even that is a side-point to my main comment stating that credit expands to capture new productivity via land and that tech has made a marginal activity possible such as uber part-time-drivers has given access to more credit for early entrants which then forces everyone to "earn more" so that they can all bid more and pay greater interest on greater loans to the bankers. And you can be as productive as you like because the bankers keyboards are not going to run out of zeros any time soon. How do banks create money, and why can other firms not do the same? An explanation for the coexistence of lending and deposit-taking: http://www.sciencedirect.com/science/article/pii/S1057521914001434 http://www.sciencedirect.com/science/article/pii/S1057521914...
- deleted 10y ago
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l33tbro 10y ago

To add to your points, Uber is currently operating at a loss (1) due having so much runway. Once they've smited your local cab company, do you really think they're going to maintain bargain fares? (1) http://www.businessinsider.com.au/uber-2016-losses-2016-8 http://www.businessinsider.com.au/uber-2016-losses-2016-8

branchless 10y ago
Yeah I kind left that out as it's their choice how they spread their gains and losses over the medium term. I agree it's likely a monopoly play but it doesn't feed straight into my point about their "efficiency" coming from a non-level playing field. One can debate if taxis should be registered or not however those stating that uber is more efficient are not comparing like for like. Even that is a side-point to my main comment stating that credit expands to capture new productivity via land and that tech has made a marginal activity possible such as uber part-time-drivers has given access to more credit for early entrants which then forces everyone to "earn more" so that they can all bid more and pay greater interest on greater loans to the bankers. And you can be as productive as you like because the bankers keyboards are not going to run out of zeros any time soon. How do banks create money, and why can other firms not do the same? An explanation for the coexistence of lending and deposit-taking: http://www.sciencedirect.com/science/article/pii/S1057521914001434 http://www.sciencedirect.com/science/article/pii/S1057521914...
deleted 10y ago
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