Can Uber be considered fair competition when its price model is subsidized by billions in venture capital?
The situation is far more complex than the gung-ho "share economy" media narrative would suggest.
Whether you agree with it or not, Naked Capitalism’s Uber series (Part One, Part Two, Part Three, Part Four) is required reading if you want to talk about Uber.
If, as this series of articles suggests - and strongly supports with economic evidence and analysis - Uber's primary business model is "drive traditional taxi firms out of business with subsidized price dumping, then extract returns from a monopoly market afterwards," then Italy or any other country and/or municipality would be correct in trying to compensate for this clear market failure by regulating or even banning Uber.
Techdirt has not posted any stories submitted by Sebastian.
Fair Competition?
Can Uber be considered fair competition when its price model is subsidized by billions in venture capital?
The situation is far more complex than the gung-ho "share economy" media narrative would suggest.
Whether you agree with it or not, Naked Capitalism’s Uber series (Part One, Part Two, Part Three, Part Four) is required reading if you want to talk about Uber.
If, as this series of articles suggests - and strongly supports with economic evidence and analysis - Uber's primary business model is "drive traditional taxi firms out of business with subsidized price dumping, then extract returns from a monopoly market afterwards," then Italy or any other country and/or municipality would be correct in trying to compensate for this clear market failure by regulating or even banning Uber.
Techdirt has not posted any stories submitted by Sebastian.
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