Uber’s ‘disruption’ is far from benign - but it’s not too big to ban | Abi Wilkinson
Uber is one of those companies that seems to take pride in upsetting the status quo. Its cheerleaders claim the minicab app is a shining example of "disruptive innovation" - where entrepreneurs change entire industries by thinking outside the box. Critics contend that Uber's business model is actually pretty traditional. The only major difference is scale, and the use of a high-tech booking system.
And while the app booking system is certainly convenient, it's far from unique to Uber. There are now numerous firms using similar technology. None, though, have the same sort of global coverage Uber does. What really sets the company apart is its aggressive growth strategy, enabled by billions of dollars of investments. It has been accused of attempting to become "too big to ban" by undercutting on price - even if this means losing money - in order to drive competitors out of business and capture markets. The idea is that if Uber is able to dominate the minicab industry in a given city, politicians will struggle to ban it while keeping voters on side. This makes regulating the company difficult, as the threat of prohibition is the most powerful weapon in regulators' arsenal.
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