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Creative Destruction and the Sharing Economy

Uber as Disruptive Innovation

Henrique Schneider

While creative destruction and disruptive innovation change the entrepreneurial landscape; regulation – especially regulation of sectorial markets and competition regulation – can delay this change or even bring it to a halt. Uber plays an active role between these two forces: first as an agent of creative destruction and then possibly in championing regulation on its own terms. Grounded in a particular understanding of the economic concept of the market as a series of processes, this book explores the implications of creative destruction, competition regulation and the role that businesses play. Instead of discussing these relations in a purely abstract manner, this book uses Uber as a case study.
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Conclusion: destroying Uber, the destroyer?

Henrique Schneider

Extract

Is someone destroying Uber, the destroyer? Many would like to. Sectorial and competition regulation could end in destroying the innovation of Uber, of the company. But there is also the danger of self-destruction: The more Uber adapts to regulation or submits to it, the less it innovates. This means that if Uber does not continue to disrupt the taxicab industry by innovating, it will itself become the target of even newer market entrants, even more disruptive innovators. By destroying creative destruction, Uber risks being destroyed itself.

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