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Comment by sokoloff | Hacker News Reader

I am overwhelmingly likely to save more on car services in the next 10 years than I am to pay in increased local taxes, leaving Uber/Lyft a net economic positive for me, even after considering that most of my Uber rides are expense-able to my company.

Uber is proving that car service is not a natural monopoly. If the dominant provider is taking too many liberties with pricing, someone else will come in to right the market.

I didn't intend to start a massive defense of Uber subthread, but to say there's no single thing positive about Uber I thought was a substantial overstatement.

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> Uber is proving that car service is not a natural monopoly. If the dominant provider is taking too many liberties with pricing, someone else will come in to right the market.

This is complete nonsense. Car services have never been a monopoly, natural or otherwise; in every major city there have always been multiple car services. Uber's valuation is premised almost completely on the hope/expectation that they can become a monopoly and start exploiting their market position to the detriment of everyone.

Seriously, check out the Naked Capitalism series linked above. It lays out in great detail why Uber is not in any way an example of someone "coming in to right the market". They're wronging the market.

?? I said they're not a monopoly and you seem to violently argue against my text saying that they're not a monopoly. You've convinced me: I agree that they're not a monopoly.

Uber is losing money, believing they can make it up later somehow (presumably self-driving cars, possibly by taking a cut of a substantial percentage of the car service rides).

That's participating in the market, not wronging it, IMO.

No, they believe they can be a monopoly. There's no other way they can be profitable.

So.... You agree that the taxi market is NOT a monopoly?

As soon as Uber tries to become a monopoly, and raise prices, then Taxi cabs can start right back up again, and take back the market with lower prices.

Or ANOTHER VC company can come in, and subsidize prices, and knock Uber out.

As soon as Uber attempts to exploit the market, they are dead.

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