Essays on Article Review 3 Article

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Uber Infiltration Irks Delaware Cabbies Summary The article gives a summary of the reactions of the Delaware cabbies after the infiltration of the Ubers in the city. According to the article’s author Jeff Offredo, the penetration of the Uber into Delaware transport industry increase competition and that irks the Cab drivers (Offredo 1). That is because the Uber drivers are poaching customers from the densely populated locations such as University of Delaware and Amtrak station. The article highlights that the Uber drivers are not held to the regulatory standards of the Cab operators such as paying a fixed fee and tax of $5,000 and also a six-month inspection.

However, DeIDOT Secretary, Jeniffer Cohan, argues that since most citizens trust the operations of the Ubers, the Delaware Department of Transportation should have an agreement with the Uber Company. This will ensure that the regulatory standards that apply to the Cab drivers also become relevant to the Uber drivers. Relation to Monopolistic competitionThe issue presented in the article relates to monopolistic competition in various ways and among them is the fact that the Cab and the Uber drivers offer similar services although they are not identical.

The Cab and Uber drivers provide transportation services to their customers though the two companies use different types of cars. Moreover, the market has many sellers as in the case of monopolistic competition (Chang 22). According to the article, there are more than 64 licensed cab operators and an unknown number of Uber operators. The two firms compete in the market and also can face more competition from other firms since there is free entry to the market.

In conclusion, it is evident that the Cab operators are not happy with the penetration of the Uber drivers. That is because they feel that these people are stealing their businesses. Besides, these Uber drivers are not held by the regulatory standards that attest that a particular driver has a good record. Works CitedChang, W. W. (2012). Monopolistic Competition and Product Diversity: Review and Extension. Journal of Economic Surveys, 26(5), 879-910. Doi: 10.1111/j. 1467-6419.2011.00682.xOffredo, Jon. Uber Infiltration Irks Delaware Cabbies. USA TODAY. N.P. , 2015. Web. 7 May 2015.

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