Competition and a Free Market Economy – Uber

October 3, 2015 2 Min Read

I am always worried by regulation that is imposed by government or industry bodies that restrict the evolution of the industry, and in many cases reduce the service that is available to the public/customer.

Currently in the UK a prime example of this is TFL (Transport For London) attempt to restrict the capabilities of Uber so that the black cabs can compete on equal terms.

This kind of stagnation in no way supports the customers and workers in any of these markets. Technology has offered an opportunity to improve a service (transportation by car) and should be embraced by all the providers.

IODs Simon Walker “TfL is right to take an interest in the way companies like Uber have disrupted the way we travel around the capital. But their proposals for further restrictions to an already heavily regulated industry are backwards and would damage London’s reputation as a city which celebrates innovation and embraces change.”

The customers have selected Uber over the black cab the market has selected now the black cab must change and evolve, they have many advantages that they can leverage:

1. The have a traditional appeal
2. They can pick up on the street
3. Already has a large network of drivers

Black cabs also had apps like Hailo well in advance of Uber but failed to capitalise on this first market advantage. So has the complacency been the reason that they now find themselves in this situation.

There are now many apps available for the taxi driver in London they have the opportunity to capitalise on this market. Rather than complain about a competitor entering the market.

Spending much of my time in London I have talked with many taxi drivers and uber drivers. Both have their interesting characters and there is no real difference in the mix of the drivers that I can see (this point is only experiential).

Taxi driver: Uber charges a lot less than this don’t know how they make a living? we can’t charge that little.

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All this did was improve the markets awareness of Uber

Uber Exec Driver: I get paid more per trip than I did working for an agency?

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Rather than following the markets direction and the black cabs having to evolve. Along with other Apps Uber now has a option to call a black cab. Embrace the market its better for customer its better for business.

The Government should regulate on Tax, Employment/Contracting law and safety not on business models.