More on Uber and Efficiency

One of the major benefits of Uber that I talked about earlier this week is how more information about supply and demand leads to greater efficiency in the car-for-hire business.
As expected, greater knowledge benefits not only the passengers who are looking for a more accessible, predictable and reliable system, but also for the drivers. In San Francisco, a third of existing, registered cab drivers have signed up for one of the car-for-hire services: Uber, Sidecar and Lyft. This means they’re doing better business with Uber et al than relying on a traditional taxi business model.
Bottom line: a “disrupting” start-up is usually perceived to have negative influences on the disrupted industry. It ain’t necessarily so.
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