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Uber Infiltration Irks Delaware Cabbies - Article Example

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Summary
The paper "Uber Infiltration Irks Delaware Cabbies" describes that the reactions of the Delaware cabbies after the infiltration of the Ubers in the city. According to the article’s author Jeff Offredo, the penetration of the Uber into Delaware transport industry increases competition…
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Uber Infiltration Irks Delaware Cabbies
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DeIDOT Secretary, Jeniffer Cohan, argues that since most citizens trust the operations of the Ubers, the Delaware Department of Transportation should have an agreement with the Uber Company. This will ensure that the regulatory standards that apply to the Cab drivers also become relevant to Uber drivers.
Relation to Monopolistic competition
The issue presented in the article relates to monopolistic competition in various ways and among them is the fact that the Cab and the Uber drivers offer similar services although they are not identical. The Cab and Uber drivers provide transportation services to their customers through the two companies use of different types of cars. Moreover, the market has many sellers as in the case of monopolistic competition (Chang 22). According to the article, there are more than 64 licensed cab operators and an unknown number of Uber operators. The two firms compete in the market and also can face more competition from other firms since there is free entry to the market.
In conclusion, Cab operators are not happy with the penetration of Uber drivers. That is because they feel that these people are stealing their businesses. Besides, these Uber drivers are not held by the regulatory standards that attest that a particular driver has a good record. Read More
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