Wednesday, August 17, 2016

Chris Dillow — Uber vs coops

Although these points explain why a coop didn’t come up with Uber in the first place, they are consistent with the possibility that coops will displace it eventually.…
In a classic paper, William Nordhaus pointed out that the profits from innovative activity usually got competed away. The question for Uber, therefore, is: does it have what Warren Buffett called an economic moat – protection against competition**? Is first mover advantage really sufficient? I’m not sure. And I’m certainly not $62.5bn sure.
Coops have started slowly in the race against cyber-feudalism, but they might win in the end.
The takeaway of this post is that the ability to organize the basis of entrepreneurship. Groups of individuals are not as capable as individuals or teams. However, most firms can be managed cooperatively, so that is good reason to believe that down the road, the entrepreneur as middleman will be eliminated.

Stumbling and Mumbling
Uber vs coops
Chris Dillow | Investors Chronicle

1 comment:

Bob said...

People need to die in accidents before Uber is subject to regulation, which will then invalidate their business model. It's a repeat of the history of the taxi industry.