Kevin Cashman — Think Uber’s Problems Stop at Its Management and Culture? Think Again.

So, while some have suggested that the solution is simply to stop using Uber (and, ostensibly, to use competitors like Lyft or Gett), this is no solution at all. The solution is making sure that these companies are subject to the same regulations as traditional taxis, as well as that they comply with labor and other laws, which was unsurprisingly absent from the Holder report. This is the innovative idea that is also a solution to many of Silicon Valley’s problems, regardless of the industry.

Uber might not be able to survive if it started caring about the safety of its passengers, the exploitation of its drivers, or the social costs it shifts onto the rest of us, but maybe it shouldn’t. As politicians plot with Silicon Valley to take over public infrastructure and to revamp the fundamental nature of work, maybe Silicon Valley shouldn’t either.

Free rider problem (pun intended).

The Minskys
Think Uber’s Problems Stop at Its Management and Culture? Think Again.
Kevin Cashman, researcher, Center for Economic and Policy Research, Washington, DC

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

David F. Ruccio — Share this!

Capitalism and the sharing economy.

Occasional Links & Commentary
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David F. Ruccio | Professor of Economics University of Notre Dame Notre Dame

Zero Hedge — Caught On Tape: Uber X's Latest Driver, Deadmau5 Taking Fares In His $300,000 Mclaren 650S

Zero Hedge
Caught On Tape: Uber X's Latest Driver, Deadmau5 Taking Fares In His $300,000 Mclaren 650S
Tyler Durden