> "competing with Uber might seem intimidating, but in many respects the company is a paper tiger. Its massive valuation, which stood at $62.5 billion in January, comes from intellectual property — its brand and data — rather than from tangible assets." Right... except that the brand is what creates the demand side of the market, the data is what makes the platform efficient and the IP provides strong defense against…
Disrupting Uber
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Re: Disrupting Uber
#32What they're missing is that higher wages depend on some barrier to entry (there are many kinds) that protects the people who have jobs at the expense of anyone who is looking for a job. As someone who works for a company with high hiring standards and correspondingly high pay, I have mixed feelings about this. It seems like there should be some jobs that are easy to get without much training, and taxi driver is a go…
Economic rents are harmful to the economy and keep new labor entrants out as you have pointed out making it harder for young people or others to get a job.
A way to complete with Uber and existing taxi services is to provide greener vehicles such as electric or hybrid (the new yellow taxi medallion cabs in NYC are all hybrid). Just as people are willing to pay more for organic food they probably be willing to pay for cleaner vehicles.
Re: Disrupting Uber
#33Re: Disrupting Uber
#34These "disruptors" need to work on wealth creation and not installing "economic rents." Economic rents, a term in Microeconomics, is trying to achieve profits beyond those in an efficient market (for example, creating artificial scarcity). The appear to be complaining because Uber is lowering the cost of overly expensive taxi fares when they should be working on a system that provides rides for less money while still…
This is a magazine for American Leftists, so they're really quite clear what they want: they want valuable services rendered to people with profits shared among the workers, not the gatekeepers to an arbitrary app. More than creating wealth, they want that wealth to be owned by the workers. To quote from the piece:
> This doesn’t mean drivers are better off working for a traditional taxi company. While Uber’s burdensome cost-shifting has come to define Uberization, the company merely digitized the taxicab industry’s already exploitative practices. The taxi medallion system, which requires drivers to pay their cab’s medallion owner at the start of each shift, deserved to be “disrupted.” But Uber’s employees face serious costs and risks nonetheless.
> The possibilities don’t have to be so restricted however. Ride-share drivers usually already own their vehicles, so in theory they could enter the ride-share marketplace themselves. By ditching Uber’s predatory practices for a cooperative model that uses the same technology, driver-owned apps could democratize the ride-sharing marketplace, fulfilling the initial promise of the so-called sharing economy.
Uber is really a place where the leftist case makes the most sense, because the means of production is already owned by the workers and are in effect paying a portion of their profits for the right to take part in an economy.
Re: Disrupting Uber
#35Re: Disrupting Uber
#36These "disruptors" need to work on wealth creation and not installing "economic rents." Economic rents, a term in Microeconomics, is trying to achieve profits beyond those in an efficient market (for example, creating artificial scarcity). The appear to be complaining because Uber is lowering the cost of overly expensive taxi fares when they should be working on a system that provides rides for less money while still…
Re: Disrupting Uber
#37These "disruptors" need to work on wealth creation and not installing "economic rents." Economic rents, a term in Microeconomics, is trying to achieve profits beyond those in an efficient market (for example, creating artificial scarcity). The appear to be complaining because Uber is lowering the cost of overly expensive taxi fares when they should be working on a system that provides rides for less money while still…
> The[y] appear to be complaining because Uber is lowering the cost of overly expensive taxi fares when they should be working on a system that provides rides for less money while still helping drivers get more pay (if that is important to them). This is a magazine for American Leftists, so they're really quite clear what they want: they want valuable services rendered to people with profits shared among the workers,…
Just as in buying computers, buying food, education, airplane fares, consumers want lower prices which is a good thing. In the case of taxis, that means the elderly who often need them because they can no longer drive and are on a fixed income can more readily afford them (surely a leftist notion).
There is no disagreement that "economic rents" are harmful to the economy, giving people artificially high profits (see the Wikipedia entry).
Are you saying that a politically left magazine want to harm the economy through economic rents instead of helping it through wealth creation? Who would be for that?
Re: Disrupting Uber
#38Does anyone know why I would be downvoted for taking the time to explain what is going on. Does someone have a problem with lowering overly high taxi fares. Uber has been doing that which is a good thing.
Re: Disrupting Uber
#39Does anyone know why I would be downvoted for taking the time to explain what is going on. Does someone have a problem with lowering overly high taxi fares. Uber has been doing that which is a good thing.
Re: Disrupting Uber
#40Does anyone know why I would be downvoted for taking the time to explain what is going on. Does someone have a problem with lowering overly high taxi fares. Uber has been doing that which is a good thing.
And to answer your question: everyone wants the benefits of economic efficiency but none of the costs. It's much easier to say "low skilled labor should be paid more" rather than "let's increase the value of labor". Also, an easy counter argument is that Uber is engaging in rent seeking against it's drivers. I don't think this has very much merit given the liquidity of driving labor.