Feb 8, 2016


The ironic thing about the Uber driver protests is that the whole economics of the situation flies right over the head of those drivers that are protesting. Uber runs a marketplace; a place where buyers (people who want a ride) and sellers (drivers) meet and transact. It's in Uber's best interest to have supply meet demand. Too much supply and the drivers are not utilized well and it becomes economically unviable to continue. Too much demand and riders can't get a ride and they stop using the service.

This is Uber's ultimate core competency. Being able to use levers at their disposal to keep demand and supply reasonably matched on a local level. The easiest lever they have to control is price. It has the twin effects of increasing / decreasing demand while decreasing / increasing supply.

And price is what the Uber drivers have been protesting. Namely that it is too low. But that's exactly what Uber wants. It wants these drivers off the road. Too many drivers and not enough demand.

In this light protesting becomes futile. In other words Uber wants them to get off the road. Protest or not. Get off the road.

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