Sajid Javid claims that tougher regulation of Uber would have “a massive detrimental impact on consumers in London” (Javid flags light touch over Uber,15 October). It is clear to me that this is erroneous, as the cheaper fares on occasions provided by Uber only reflect a unique trade’s attempt to enter a market, and undercut the existing competition and then set aside up their fares in order to maximise profit once they have achieved a dominant market position.
The long-term issue on cost is whether the residents of London want access to a regulated,iconic black taxi service, with its fares decided on by elected members (over which voters have some recourse), or a remote US company seeking to maximise profits and which is registered for tax purposes in Bermuda,Ireland and Holland.
Continue reading...
Source: theguardian.com