The App Economy Promotes Common Sense

Uber Revolutionizes Common Sense
Customers Make the Best Regulators

The popular ride-sharing service has created unwitting supporters of the free market.

But when most people think about the market economy in the abstract, they feel overwhelmed and alienated by this vast and complex system. Intimidated by their understanding of “capitalism,” they tend to demand that the state somehow control the economy through legislation and governmental regulations.

Uber, on the other hand, makes the functioning of the exchange system and the concept of consumer sovereignty clear to its most casual users through a simple app that allows them to choose and evaluate the services they seek.

Customers know that it’s not from the driver’s benevolence that the bottled water, candies, and kindness come, but from his effort to promote his self-interest — the five little stars that assure his future with the company.

The law of supply and demand, so misunderstood on paper, is obvious in Uber’s dynamic pricing. Users watch prices rise and fall with the real-time waxing and waning of demand for rides, and they decide whether it is worth using the service in that moment or if it is better to wait for prices to come down again. In this way, Uber allows its customers to participate directly in the self-regulatory power of markets.

http://fee.org/freeman/uber-revolutionizes-common-sense/?mkt_tok=3RkMMJWWfF9wsRoku6jJZKXonjHpfsX87eUlXqGg38431UFwdcjKPmjr1YIGRcF0aPyQAgobGp5I5FEBS7TYRKtst6cMUw%3D%3D

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