Should online car-hailing move towards a monopoly? One view is that monopoly companies will inevitably seek excess profits, and the field of online car-hailing has the attributes of public services, and monopoly will bring negative effects; another view is that in specific usage scenarios, whether online car-hailing or taxis They all have the characteristic of "monopoly". In specific usage scenarios, consumers cannot choose taxis or online car-hailing the same as restaurants. Therefore, if monopoly companies appear in this field, they will further infringe The interests of disadvantaged consumers.
Will online car-hailing move towards a monopoly? Should online car-hailing move towards a monopoly? If not, what can we do to prevent this incident from happening?
The online car-hailing market, which has not seen waves for a long time, has undergone sudden changes, and the successive entry of competitors has once again attracted great attention to this market, and has also added new uncertainties.
In the new policy of online car-hailing-in 2016, the "Interim Measures for the Management of Online Taxi Booking Service" promulgated by the Ministry of Transport and other departments in 2016 was announced for nearly two years. The cognition of the market is constantly advancing along with observation and thinking. At the same time, the market itself has also undergone some unexpected changes.
Some thinking has been projected into the monopoly field, which has resulted in several core questions for the online car-hailing market: First, will online car-hailing move towards a monopoly? Second, should online car-hailing move toward a monopoly? Third, if it shouldn’t, what else can we do to prevent this incident from happening?
Will online car-hailing move towards a monopoly? Although not necessarily, there is a considerable probability. One point of view points to the natural monopoly attribute of online car-hailing—natural monopoly means that in an industry, due to scale effects or asset precipitation, a single company can achieve maximum efficiency in production or services. These views believe that due to the network The existence of the scale effect of car-hailing is likely to lead to a monopoly in this market; the merger of online car-hailing in many overseas markets such as Russia also proves this possibility. In China, despite the resurgence of competition, the scale of competition It is already far below the scale of competition in 2013-2016.
Should online car-hailing move towards a monopoly? Many scholars interviewed generally held a negative attitude. One view is that monopoly companies will inevitably seek excess profits, and the field of online car-hailing has the attributes of public services, and monopoly will bring negative effects; another view is that in specific usage scenarios, whether online car-hailing or taxis They all have the characteristic of "monopoly"-in specific usage scenarios, consumers cannot choose taxis and online car-hailing the same as restaurants. Therefore, if monopolistic enterprises appear in this field, they will further infringe on the existing ones in this scenario. The interests of consumers in disadvantaged groups.
What else can we do to stop monopolies? Some views believe that firstly, it is necessary to untie ride-hailing drivers to reduce the cost of replacing platforms, so that they can freely use multiple ride-hailing platforms to prevent the emergence of monopoly on the passenger service side; while another view is from the traditional Seeking experience in taxi management. This view believes that the same strict price control and quantity control as traditional taxis should be adopted for online car-hailing.
Behind online car-hailing is a series of dilemmas, such as the dilemma between market regulation and government control, such as the dilemma between efficiency and fairness, and these dilemmas may not be escaped in every sector of the Chinese economy.
These dilemmas may make it difficult to have a perfect answer to this series of questions. "What we are looking for may be just a'not so bad' answer." Huang Shaoqing, an associate professor at the Antai College of Economics and Management, Shanghai Jiaotong University, told reporters.
Monopoly is coming?The rapid decline of rival ride-hailing giants globally has aroused the alarm of some researchers.
In July 2017, Uber merged its Russian business with Yandex Taxi, which provides car-hailing services in Russia. In 2018, according to relevant media reports, the capital side is also promoting the merger of Uber and Indian local competitor Ola. In Southeast Asia, similar news was also released.
Su Kui, an urban transportation expert in Guangzhou, told reporters: "Judging from the current trends in the world's online car-hailing market, markets such as Southeast Asia and Russia have seen further market concentration. The possibility of online car-hailing monopoly is very high. Competitors who enter in the future will face tremendous pressure."
Despite the recent changes in the domestic online car-hailing market, some new competitors have entered the game. But in Su Kui's view, the competition this time is only in individual cities, and the scale and intensity of competition are smaller than those in the previous online car-hailing market.
The reason why the online car-hailing market tends to be monopolized comes from two aspects, one is capital barriers, and the other is scale barriers.
At present, every online car-hailing giant has a huge capital team, which covers almost most of the world's top investment institutions, and capital power will become a powerful tool for existing companies.
Another important reason is barriers to scale. Huang Shaoqing told reporters: "On the one hand, online car-hailing companies are a platform, on the other hand, they provide passenger transportation services, which are strongly related to the drivers who provide passenger transportation services. Among them, The platform attribute of online car-hailing has a tendency of natural monopoly."
Natural monopoly means that in a product or service, due to the scale effect, asset precipitation and other reasons, the efficiency of the service or product provided by a company is higher than the competition of several companies.
Huang Shaoqing told reporters: “Natural monopoly does not necessarily lead to monopoly in the end, but according to this attribute, larger companies are more efficient, which increases the possibility of monopoly.â€
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