Uber is a "bezzle," doomed to disappoint the suckers who buy into its IPO

Writing in New York Magazine, Naked Capitalism's Yves Smith draws on Hubert Horan's outstanding series on the underlying economics of Uber to describe why the company's IPO will be a terrible bet for the investors who buy into it. Read the rest

El Paso taxi companies upset that city council loosened taxi regulations

Taxi companies and Uber are both awful, so it's fun to watch them fight each other. On Tuesday, El Paso's City Council voted to reduce regulations imposed on taxi companies, instead of increasing regulations imposed on Uber, as the taxi companies had hoped for.

From KVIA:

Joe Olivar, the owner of a local cab company Border Taxi, was disappointed with Tuesday's developments. He was pushing for stricter regulation of Uber drivers, including fingerprinting-based background checks.

"You guys are making a big mistake, no one operates with the same integrity. I hope the city council is accountable when something horrible happens," Olivar said, as he repeatedly brought up the issue of public safety.

"You wanted a level playing field, that's what we're doing," El Paso Mayor Oscar Leeser replied. Most of the council agreed that adding regulations was not the answer. "How many blockbuster stores do we have left" asked City Rep. Peter Svarzbein. "Could you imagine regulating Netflix? How you do you regulate a technology," he said.

Olivar said the council's approach was "fullhardy."

Read the rest

Taxi industry's Twitter campaign backfires

An Australian taxi lobby, in an effort to demonstrate why taxis are more awesome than Uber, asked people to tweet their taxi stories. People responded with complaints about surly, incompetent, and crooked taxi drivers.

From Mashable:

With some verging into the potentially criminal

Read the rest

Taxi medallion markets collapse across America

Uber may be rapacious, exploitative corporate scum, but they're knocking the bottom out of one of the most corrupt "markets" in the country. Read the rest

Uber and the appropriation of public space

The debate over technology and disruption is a red herring, writes Glenn Fleishman. The trouble with Uber is that it's a middleman that can control both ends of the market.