FTC Commissioner Joshua Wright, formerly a senior fellow at IEP, recently published an op-ed in the Washington Post about the role of competition in bringing about consumer benefits. In particular, Wright highlights the innovative business models the Internet enables in the taxi market:
A wave of creative destruction is now crashing down upon the taxicab industry. Until recently, a consumer hailed a cab on the street or telephoned a dispatch service and paid with cash. New smartphone applications such as Uber and Hailo are revolutionizing the industry by using GPS-enabled wireless devices to match consumers and drivers with the tap of a screen and a credit card payment. As is to be expected with any outbreak of creative destruction and innovation, consumers are reaping the benefits and entrenched interests are fighting back to suppress this new form of competition. The entrenched interests include not only taxicab drivers but the bodies that regulate them.
Read the whole piece here.