
Uber is a zero-profit proposition - coryl
http://coryliu.com/post/144816481497/uber-is-a-zero-profit-proposition
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nanis
The author forgets the fact that the conditions listed imply zero _economic_
profit. That still covers the operators' opportunity costs (i.e. what they
could have made switching to their next best alternative). Profits converge to
zero in any industry where incumbents are not protected via government
violence. Industries are born, firms are formed to capture the supra-normal
profits during the initial period of adjustment.

So, yes, in the long run, Uber is a zero profit proposition ... Unless
localities set and enforce new quotas on how many people can drive for a
living. We have seen this movie before.

