Cory Doctorow tells us all that Uber is nothing but bezzle.
Well, could be. I don;t think it is but then so what? My opinion is that it is in fact profitable in its mature markets – sans covid at least – and loses by investing in more. But that is just my opinion and I’ve done zero research to back it up. Which brings us to Doctorow:
That’s a funny thing to read in a business paper about a company that is losing 38 cents on the dollar. I mean, I love public goods that have no market case – health care, education, transit – as much as the next commie, but these are not “proven in the marketplace.”
They’re public services, and they’re only sustained by public subsidies – private firms cannot perform these functions.
If you’re going to try and use these economic buzzwords it helps to know what they mean and Doctorow doesn’t know shit.
Health care, education and transit are, none of them, public goods. They are all excludable and rivalrous. They are all, also, provided at times by private companies. The American medical system, Yale and Greyhound all come to mind.
As to market proof compare and contrast the performance of the private companies that provide these things against the public sector alternatives.
Someone who gets economics this wrong is just the person to be analysing the profitability, or not, of Uber, right?