alt Hacker News> That is basic economics and I see it all the time in the marketplace
Yes, it’s a market failure. The solution is not to never attempt anything that might result in market failure.
> Wait until the competition cancels your favorite air route and see what happens to the prices
Bad comparison. The locality controls the airport. Not the route. Not the destination. With Uber, the locality controls the pick-up and at least significant parts of the route. (There also isn’t any federal preëmption of ride share regulation the way there is in the air.)
> What are the easy remedies? Restart public transit?
In the event Uber bankrupts the bus system and also Lyft and Waymo? Tax them. Increase use fees. Revoke bus lane privileges.
Again, this is a bogeyman. It’s never actually happened in urban transportation in the modern era, particularly, never with Uber.
Your promise that the obvious economic outcome won't happen, and your insistance that it hasn't happened with Uber, isn't convincing. This is how markets and how aggressive business - particularly modern business - works.
(Also, regarding Uber, how many times have they been in a market with no competition?)
> In the event Uber bankrupts the bus system and also Lyft and Waymo? Tax them. Increase use fees. Revoke bus lane privileges.
What if Uber doesn't provide equitable service? How about hospitals getting shut down by for-profit owners, leaving communities without healthcare? Businesses chase profit and cut losses - not a good choice when you need equitable servcies.