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Uber Office Raided By Police In China, Accused of Running 'Illegal' Car Business

albert555 writes: Uber's curse keeps on striking after Uber's office in the southern Chinese city of Guangzhou was raided by authorities on the 30th of April 2015. Uber is accused of running an 'illegal' transport service, according to the Guangzhou Daily. Uber has been implanted in China since August 2013 and is suspected of not having the proper qualifications to run a private car business in the city. Following the recent German court ban two weeks ago, who will win the fight for private transportation? Long-term, established transportation companies with powerful lobbying arms or the newcomer making use of disruptive technology? Does Schumpeter's creative destruction also apply to the transportation sector?

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  1. Re:Who will win? by tmosley · · Score: -1, Redundant

    "please enlighten me how requiring to pass a test that you fit to transport others"

    What is a person going to do as an Uber driver that would hurt others that he couldn't do just driving himself or his friends around? If there is a danger posed by an Uber driver, then the same danger is posed by regular drivers, and EVERYONE should be subjected to the same tests. Don't punish people for carrying out commerce. That is oppressive and hurts the people.

    "requiring more frequent car inspections (since the cars are also used much more intensely)"

    The cars are also owned by the drivers, who will notice when something is wrong, and get it addressed quickly, since they have to pay for it and don't want damage to compound. If the car is unsafe, the passenger will notice, give a bad rating, and complain to Uber, who will quickly deactivate the driver contengent on getting his car fixed. This is called market regulation, and it is 1000x as effective as corrupt government regulation. All you have to do is find a corrupt inspector and slip him five extra bucks and your car will pass ANY inspection.

    "or an insurance that covers potential damage you your customers is oppressive and illegitimate?"

    Uber already provides that, though there is a meme going around that they don't. It says they do right on their webpage. $1 million in commercial insurance, just like a regular cab.

    "Good luck in your anarchy, which will end up in despotism after a while."

    Freedom is like food for the people. Oppression is like starvation. You have to eat every now and then to live. Complaining about having to eat because you will just get hungry again later is not a legitimate complaint.