Re:Uber discusses plan to lay off about 20% of employees
by zwaps on Wednesday April 29, 2020 @05:20AM
(#23017122)
Well it is a two-sided platform market that may very well be sustainable.
However it is set up to extract rents from both consumers and drivers, which is a problem for the latter. In effect, it captures profits from transportation markets and sends them to a company in the US.
And that may be both sustainable, since its a platform market, and it may create suffering and poverty for many drivers.
Handily, the existence and further political support for traditional taxis implies that a regulatory approach on competitive misconduct is unlikely. So these companies may not only be economically stable, but even in terms of competition policy.
In any case, I hope you see the difference between companies selling a product, and those selling a platform, for a local economy.
However it is set up to extract rents from both consumers and drivers, which is a problem for the latter. In effect, it captures profits from transportation markets and sends them to a company in the US.
And that may be both sustainable, since its a platform market, and it may create suffering and poverty for many drivers.
Handily, the existence and further political support for traditional taxis implies that a regulatory approach on competitive misconduct is unlikely. So these companies may not only be economically stable, but even in terms of competition policy.
In any case, I hope you see the difference between companies selling a product, and those selling a platform, for a local economy.