[…] by carefully describing drivers in their system as “entrepreneurs” and appropriating the language of true markets, Uber has been welcomed by communities and policymakers as if they were creating a new marketplace. That has serious implications for policy, regulation and even civil rights. For example, we can sincerely laud Uber for making it easier for African American passengers to reliably hail a car when they need a ride, but if persistent patterns of bias from drivers arise again in the Uber era, we’ll have a harder time regulating those abuses because Uber doesn’t usually follow the same policies as licensed taxis.
These pseudo-market patterns also mask patterns of subsidy, like the fact that Uber’s current operations are subsidized by investors to the tune of $2 billion per year. That’s a cost that will be immediately passed along to consumers as soon as Uber succeeds in displacing conventional taxis.
A thought-provoking piece on our inability to reconcile the speed of the evolution of marketplaces with the regulations required to control monopolization and consumer-unfriendly behaviours.