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There's a very good read in HBR today on the fact that Uber's business model is predicated on illegality. Thought provoking read. https://hbr.org/2017/06/uber-c

There's a very good read in HBR today on the fact that Uber's business model is predicated on illegality. Thought provoking read. https://hbr.org/2017/06/uber-cant-be-fixed-its-time-for-regulators-to-shut-it-down https://hbr.org/2017/06/uber-cant-be-fixed-its-time-for-regu...

ErikVandeWater 9y ago
Is there any example of a city/state government getting an exorbitant amount from Uber for violation of a statute regarding taxis? I imagine if one were to do it, many others would follow - everyone's looking for a buck.
shas3 9y ago
This is one of the dumber articles I've read on Uber. I don't think the author has used cabs much and is just theorizing. In a mid-size American city, I've had cabs cancel on me around half the times I've called them, leaving me stranded. I've been through an experience where someone with a fake taxi license fleeced me charging me 3X with physical intimidation. I know someone who was robbed at gunpoint by his fake cab driver. The author misrepresents the taxi industry as some sort of a philanthropic order of saints. The only times cabs have been reliable for me are when going to and from airports. Uber is fundamentally different from regulated taxis. Also, there's no moral framework for the taxi-related regulations (medallion, commercial insurance, etc.). They're both a relic of an age that has passed and a prime example of regulatory capture. It is worth noting that the byline for the article states this: > Benjamin Edelman is an associate professor at Harvard Business School and an adviser to various companies that compete against major platforms I wonder what 'major platforms'.
ScottBurson 9y ago
That is an interesting piece. But I think it somewhat contradicts itself. On the one hand it claims, "The company’s cultural dysfunction [...] stems from the very nature of the company’s competitive advantage: Uber’s business model is predicated on lawbreaking." On the other, it points out that Lyft was actually the groundbreaker in using unlicensed drivers; in fact it links to a 2013 Uber policy statement [0] detailing Uber's plan to start using unlicensed drivers only after competitors had been doing so unimpeded in a given metro area. The point is, Lyft was even more aggressive in ignoring the relevant legal strictures than Uber was; yet I have not seen any stories about a dysfunctional culture at Lyft, which, by the author's argument, should be even more inevitable. Indeed I know hardly anything about Lyft as a company, except that their service has worked for me when I've tried it, and the drivers seem to prefer it over Uber. If I had to say what seems to distinguish the two businesses, based on what (little) I know, I would say that Lyft seems more interested in providing a good service, while Uber seems more interested in making lots of money. I am tempted to conclude that Uber's problems are rooted more in a general lack of concern for customers, drivers, and employees than in the fact that their business model is somewhat outside the law. [0] http://web.archive.org/web/20150910144736/http:/newsroom.uber.com/2013/04/uber-policy-white-paper-1-0/ http://web.archive.org/web/20150910144736/http:/newsroom.ube...

ErikVandeWater 9y ago

Is there any example of a city/state government getting an exorbitant amount from Uber for violation of a statute regarding taxis? I imagine if one were to do it, many others would follow - everyone's looking for a buck.

shas3 9y ago

This is one of the dumber articles I've read on Uber. I don't think the author has used cabs much and is just theorizing. In a mid-size American city, I've had cabs cancel on me around half the times I've called them, leaving me stranded. I've been through an experience where someone with a fake taxi license fleeced me charging me 3X with physical intimidation. I know someone who was robbed at gunpoint by his fake cab driver. The author misrepresents the taxi industry as some sort of a philanthropic order of saints. The only times cabs have been reliable for me are when going to and from airports. Uber is fundamentally different from regulated taxis. Also, there's no moral framework for the taxi-related regulations (medallion, commercial insurance, etc.). They're both a relic of an age that has passed and a prime example of regulatory capture. It is worth noting that the byline for the article states this: > Benjamin Edelman is an associate professor at Harvard Business School and an adviser to various companies that compete against major platforms I wonder what 'major platforms'.

ScottBurson 9y ago

That is an interesting piece. But I think it somewhat contradicts itself. On the one hand it claims, "The company’s cultural dysfunction [...] stems from the very nature of the company’s competitive advantage: Uber’s business model is predicated on lawbreaking." On the other, it points out that Lyft was actually the groundbreaker in using unlicensed drivers; in fact it links to a 2013 Uber policy statement [0] detailing Uber's plan to start using unlicensed drivers only after competitors had been doing so unimpeded in a given metro area. The point is, Lyft was even more aggressive in ignoring the relevant legal strictures than Uber was; yet I have not seen any stories about a dysfunctional culture at Lyft, which, by the author's argument, should be even more inevitable. Indeed I know hardly anything about Lyft as a company, except that their service has worked for me when I've tried it, and the drivers seem to prefer it over Uber. If I had to say what seems to distinguish the two businesses, based on what (little) I know, I would say that Lyft seems more interested in providing a good service, while Uber seems more interested in making lots of money. I am tempted to conclude that Uber's problems are rooted more in a general lack of concern for customers, drivers, and employees than in the fact that their business model is somewhat outside the law. [0] http://web.archive.org/web/20150910144736/http:/newsroom.uber.com/2013/04/uber-policy-white-paper-1-0/ http://web.archive.org/web/20150910144736/http:/newsroom.ube...