Now this all assumes an efficient market. If Uber were to start abusing its monopoly powers, that would be something to be legitimately concerned about...
Now this all assumes an efficient market. If Uber were to start abusing its monopoly powers, that would be something to be legitimately concerned about...
I think Tyler's point is, there is a stock of underutilized cars that gets converted to Ubers. Hypothetically, I needed a car for work, and I decide to drive it for Uber on weekends.
In the long run, I decide I don't need a car because Ubers are so available. The supply of Ubers then goes down, while demand goes up, since I don't have the option to drive myself.
I don't think there is any mechanism here that would drive the cost of an Uber ride down. Total transportation cost goes down because the total of Uber plus self-driven cars go down, but the mix goes to more Uber, less self-driven cars.
I think as Uber over time ceases to benefit from an 'arb' where it piggy-backs on sunk-cost cars and personal insurance, the cost of Uber-ing goes up, but overall transport cost goes down because people don't have to pay for underutilized cars.
It's possible that over time the mix of cars goes to utilitarian electric models, and a 'fun' car becomes a specialty item like a high-end sports car is today, and some people don't love their new options.
But if you believe in free markets, you would have to say that the market has spoken and arrived at a revealed preference for paying less for transport in a utilitarian vehicle that is not underutilized.
The article agrees that a more efficient use of resources won't cause (net) harm. It claims it might harm transportation and benefit everything else, for a net benefit.
I wonder if they plan to do that: