What Can We Learn from Business Innovation Fail-ure of Uber in Southeast Asia Market?

Uber is a global pioneer in the sharing economy platform entitled ride-hailing. It started to enter the Asian market in 2013-2014 with various community responses in each region. In March 2018, Uber withdrew from the competition in Southeast Asia after being acquired by one of the dominant players in the region, Grab. In connection with Uber's failure to operate its business in the region, this paper discusses Uber's business model, business expansion, competition in the market, and the factors that led to Uber's failure in the Southeast Asian market. To comprehensively describe the developing context, we used a qualitative method with a systematic data collection approach from literature reviews in conducting this study. This study emphasizes that large funding supports do not guarantee the success of business operations in a more globalized setting. Different market characteristics require different approaches. The case of Uber's failure in the Southeast Asian market, even though it was supported by large funds to "Uberize the entire world," proves that the characteristics made more "localized" are more likely at a certain point in time to survive. This study also underlines some learning points from the dominant factors causing the failure of Uber's business operations in the region that require immediate adaptation: non-conformity with market preferences, challenges from prevailing policies and infrastructure issues, and strong competition from local competitors

Sharing Economy Meets the Sherman Act: Is Uber a Firm, a Cartel, or Something in Between?

The sharing economy is a new industrial structure that is made possible by instantaneous internet communication and changes in the life, work, and purchasing habits of individual entrepreneurs and consumers. Antitrust law is an economic regulatory scheme dating back to 1890 in the United States that is designed to address centrally controlled concentrations of economic power and the threats that those concentrations pose to consumer interests and economic efficiency. In order to accommodate a modern enterprise structure in which thousands or millions of independent contractors join forces to provide a service by agreement among themselves, antitrust law requires re-envisioning and careful application. The success of Uber, Airbnb, and other sharing economy firms, and the consumer benefits that those firms promise, show both how difficult and how important that re-envisioning can be

Uber\u27s Efficiencies: A Modest Proposal for Limiting Use of Antitrust\u27s Per Se Rule

In antitrust law, the per se rule against horizontal price-fixing seems set in stone. Over time, however, antitrust enforcers and courts have declined to use this rule and instead have used the rule of reason. This change stems directly from the recognition that the per se rule\u27s blunt application may end up harming consumers in some contexts. Using Uber as an example of a consumer-friendly, efficiencyenhancing business model, this Comment argues that using the per se rule to analyze horizontal arrangements like Uber\u27s sacrifices consumer welfare. Instead, courts should use the rule of reason and engage in cost-benefit analysis where horizontal arrangements create unique efficiencies. This proposition necessarily demands that courts and enforcers identify arrangement-specific efficiencies and measure those efficiencies in a concrete way. This Comment offers only suggestions to those points. Courts lose nothing by engaging with the rule of reason\u27s detailed framework, but society might easily lose innovative business structures that benefit consumers if courts continue to defer to the per se rule.

When Tech Startups Outgrow the 1099 Model: Moving Firms Out of the Kiddie Pool

The 1099 independent contractor has become the new norm for Silicon Valley startups. In the wake of the Ninth Circuit Court of Appeals decision in Alexander v. Fed Ex, tech startups have been scrutinized for their financially savvy preference for 1099 contractors through both class action lawsuits and administrative proceedings. As these movers and shakers grow from humble beginnings to companies with multi-billion dollar valuations, the choice between classifying workers as traditional W-2 employees or 1099 contractors will have dramatic effects on the peer economy\u27s labor force and tax status. This Note examines the startup worker classification dilemma, concludes that neither a strict application of the W-2 formula nor the 1099 model alone is an adequate fit for the high risk nature of startups, and proposes a regulatory solution for worker classification based on the concept of critical mass--the point at which these firms should exit the 1099 kiddie pool and start classifying workers as W-2 employees

Governance and Regulation of Ride-hailing Services in Emerging Markets: Challenges, Experiences and Implications

This paper seeks to shed some light on the different considerations for regulation and governance of ride-hailing platforms in emerging markets, highlighting their positive and negative externalities. Building on an extensive review of the literature and secondary sources, we outline Ride-hailing's identified and potential effects on users (providers and consumers), incumbents, and society. Based on the welfare impacts structure, we identify the significant challenges that regulators face in understanding, monitoring, evaluating, and regulating this type of transportation innovation. Finally, the paper proposes a framework for approaching such mobility innovations from governance and regulation perspectives. In a context of exponential growth in research and innovation in urban mobility in general and Ride-hailing, a rigorous review of the literature and a critical framework for understanding governance and regulation in such services in rapidly changing contexts is a timely contribution

An Empirical Analysis of the Impacts of the Sharing Economy Platforms on the U.S. Labor Market

Each generation of digital innovation has caused a dramatic change in the way people work. Sharing economy is the latest trend of digital innovation, and it has fundamentally changed the traditional business models. In this paper, we empirically examine the impacts of the sharing economy platforms (specifically, Uber) on the labor market in terms of labor force participation, unemployment rate, supply, and wage of low-skilled workers. Combining a data set of Uber entry time and several microdata sets, we utilize a difference-in-differences (DID) method to investigate whether the above measures before and after Uber entry are significantly different across the U.S. metropolitan areas. Our empirical findings show that sharing economy platforms such as Uber significantly decrease the unemployment rate and increase the labor force participation. We also find evidence of a shift in the supply of low skill workers and consequently a higher wage rate for such workers in the traditional industries