>The app and payment is the true innovation. Skirting local regulations by hiring out contractors isn't innovation. As far as Uber is concerned, though, the ha

>The app and payment is the true innovation. Skirting local regulations by hiring out contractors isn't innovation. As far as Uber is concerned, though, the hard part of their business IS skirting local regulations. Their core competence is not running a payment system - it's being able to lobby successfully to enter protected markets where other taxi companies couldn't. Once they've got first mover advantage the network effect takes over.