Lagging Regulation: Uber and Amazon
I was reading the Amazon book “The Everything Store,” and it was interesting to see the parallels between them and Uber. They both took industries by storm and one way they were able to win a lot of territory in the land grab was that regulation didn’t catch up to them for a LONG time. It took years before legislation for an online sales tax was passed. The fact that an Amazon “store” wasn’t located anywhere worked to their advantage. They had a 8% advantage on price for years. They also had a model where they didn’t have to store inventory, and many other advantages over Barnes and Noble, but still, this helped.
Looks like the same thing is happening with Uber, Taxi drivers legislated their protections in by way of minimum prices and many different hurdles to becoming a taxi driver, medallions, etc.
Regulation has given Uber and Lyft the legal right to operate and without any of the
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