Rafi Mohammed

Regulation is Hurting Cabs and Helping Uber

Posted on July 10th, 2014 (0 Comments)

Uber is overtaking the world! In just four years, the private car sharing service has grown from its debut in San Francisco to now serving 143 cities in 40 countries. Investors, of course, are taking note. A recent private investment effectively valued Uber at $18.2 billion – only Facebook raised money from investors at a higher valuation!

As much as I am enamored with Uber’s service – it’s playing in an uneven playing field. Local governments regulate the prices of Uber’s chief rivals, taxi cabs. As a result, taxi cabs are sitting ducks to Uber’s opportunistic pricing. Please check out my latest piece for the Harvard Business Review which discusses this unfair competitive environment.

The Amazon/Hachette battle is totally centered on price – please check out my recent appearance on Bloomberg West where I discuss this issue.

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