Dean Baker — If Uber Succeeds in Monopolizing the Market Then Obama is Supposed to Regulate His Former Political Adviser

The Washington Post reported that Uber is deliberately trying to drive Lyft, its major competitor out of the market, by having temporarily low rates and subsidies to drivers. If the Post's reporting is accurate, and barriers to entry prevent new companies from effectively competing with Uber, then the company is engaging in classic anti-competitive tactics. This is the sort of activity that is supposed bring intervention from the Justice Department, since Uber will be charging higher prices if it succeeds in eliminating Lyft.

The management of Uber is either not aware of the law or counting on its political power to ensure that the law is not enforced. Uber hired David Plouffe, President Obama's top political strategist, to a top position in 2008.

Beat the Press
If Uber Succeeds in Monopolizing the Market Then Obama is Supposed to Regulate His Former Political Adviser
Dean Baker | Co-director of the Center for Economic and Policy Research in Washington, D.C