May 25, 2017

Uber’s Reckless Driver



Uber app startup page and Uber search cars map on the angled front view white and black Apple iPhones 5s
Copyright: alexeyboldin / 123RF Stock Photo

“It’s often observed with wonder,” my colleague Geoff Colvin wrote in Fortune some months ago, that “Airbnb is the world’s largest provider of accommodations but owns no real estate, and that Uber is the world’s largest car service but owns no cars.”

Each of these quintessentially 21st-century businesses connects buyers and sellers directly, instantly, and globally—dispensing with middlemen, bypassing entrenched corporate leaders and long-protected guilds, and harnessing the bootstrap entrepreneurialism of hundreds of thousands of independent contractors around the world. These companies have no inventories to stock, no supply chains to manage, very little overhead to maintain, few capital expenditures to invest in (beyond some core intellectual property), no unions to negotiate with, and relatively few employees to provide benefits for.

Indeed, in an economic sense, it’s hard to imagine business models that are this “frictionless.” And yet, both of these companies generate plenty of friction nonetheless. Airbnb, whose core business has clashed with existing short-term rental laws in many markets, has gotten pushback from regulators, unions, and—no surprise—the hotel industry that’s struggling to compete against it. And as for Uber? Well, let’s just say that if the company faces any more friction from opponents, litigants, regulators, drivers, and its own […]

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About NGE Staff 7935 Articles
The News for the Gig Economy Staff is constantly searching the web for the latest news regarding freelancing and gig platforms to bring them to you in one handy place. All articles with this generic author have been sourced with the original location at the bottom of the piece. We encourage our readers to view the original source of all excerpts. NGE is a project of ARC Online, LLC.

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