The Uber Monopoly- Don't Let It Happen

It is obvious (or should be) that Uber's long term objective is to create a monopoly and to undermine all traditional legal/regulatory obstacles to exploiting anti-competitive market power. Again, please realize that Uber's game plan is to hold out until they have a strong enough market dominance, so that many of the risks go away, and the IPO price is inflated by all the monopoly power it can readily exploit....and if Uber gets to monopoly power, then like any other robust monopoly, it will be able to make big profits by raising prices — especially surge prices — and ultimately charging customers more than they were paying before Uber came along.

It is true that Uber really has figured out ways to make the for-hire transportation market more efficient, but that is not the point. You have to look at the bigger picture. In economics jargon, there is something known as a network effect. It’s the reason that eBay has a stranglehold over the collectibles market and Craigslist dominates online classified ads. Sellers list their goods on these markets because they have the most buyers; buyers go to them because they offer the largest selection. Once a dominant company is established in a two-sided market like this, it’s hard for anyone else to create a viable competitor. This is why Uber is offering lavish subsidies to both drivers and passengers to try to become the dominant operator in as many markets as possible.

Competition has almost always driven p[rices down. Competition is healthy and good for the consumer. But an Uber-dominated market will prevent a competitive market, leaving much room and the amity to raise for fares, further decrease competition and create massive profits for Uber shareholders.

As a consumer, you should consider these things because it is you...the consumer...that is the one who will be crying when Uber is the only game in town and they jack prices up so high that you are once again, forced to take the subway.....and the driver, it is you what is making Uber a monopoly. They can't exist right now without you. But you can exist without them. You can go back to the traditional car service, livery base or black car company you came from and help prevent Uber dominance. By continuing to driver for Uber, all Uber drivers are creating their own demise. Once the self-driving vehicle comes out, you will all be unemployed. All of your traditional companies (taxis and car services alike) will be gone and you will have to find a new profession. You will be kicked to the curb in a few years. Why do you think Uber is investing so heavily in the self-driving vehicle market. Because they are planning on replacing you. Don't let them do this. Get out now.

So here it is in a nutshell.......

  1. Consumers- stop using Uber because your continued use will lead to an Uber monopoly which will surely driver prices up sky high, which you will ultimately pay and be unhappy about it

  2. Drivers- stop driving for Uber as you are allowing Uber to render you useless to them. There will be no Uber drivers in a few years because they will not need you anymore. Your old car service affiliations will be done because you enabled Uber to get rid of the competition

  3. For-Hire Vehicle Industry Stakeholders- get involved, call your politicians, call your trade organizations, take a stand, yell out loud, help others get involved, do whatever you can to stay alive and fight the good fight. To do anything less will surely lead to your demise.