> No that’s very different as bakeries and flour mills add value to the commodity product. Uber adds value by letting me call a ride by clicking on an app, and

> No that’s very different as bakeries and flour mills add value to the commodity product. Uber adds value by letting me call a ride by clicking on an app, and then telling me when it has arrived, rather than making me call the cab dispatch office, wait on hold, and then constantly look out the door to see if the cab is there. > Now, Uber costs more than the cabs did before. Not here, it doesn't. In virtually every city, operating a cab required that one purchase or lease a medallion, and those were very expensive (up to $1 million in NYC). Now that was a pure rent-seeking racket. Those medallions are still out there, by the way. If Uber is really charging more than a cab, then the cabs will come back and undercut them.