The Invisible Hand of Uber?

Authors

  • Fernando Fuentes Facultad de Economía y Negocios , Alberto Hurtado University image/svg+xml
    • Carlos Ponce Facultad de Economía y Negocios , Alberto Hurtado University image/svg+xml

      DOI:

      https://doi.org/10.11565/oe.vi104.105

      Keywords:

      UBER, political economy

      Abstract

      Uber is—in technical terms—what economists call a platform. In simple terms, it is an intermediary that connects, online, suppliers of transportation services with those who demand them. Its business model is simple. On one side, the company registers all private drivers willing to offer transportation services. On the other, potential passengers “download” an app—a program installed on a mobile phone—through which they request the services of a driver registered with Uber. The company sets the estimated price of the requested trip and the transaction is executed. In general terms, 80% of the fare constitutes the driver's compensation, while Uber retains the remaining 20%. Continue reading...

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      Published

      2016-05-01

      Issue

      Section

      Articles

      How to Cite

      The Invisible Hand of Uber? (2016). Observatorio Económico, 104, 4-5. https://doi.org/10.11565/oe.vi104.105

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