Rather missing the point of the capitalists

We’d not object to this at all:

What we need is a co-operative rideshare app for drivers so that all profits are returned to them rather than redirected to silicon valley

You wish to do that then you go right ahead. We are, after all, believers in those free market things around here.

But we would remind. Who is this “we” that is going to do this? More importantly, who is this “we” that is going to pay to get the thing up and running? After all:

Uber reported its first operating profit on Tuesday on the back of better control of costs, marking a turning point for the chronically lossmaking company after years of heavy spending in a controversial dash for growth.

The long-awaited landmark in the ride-hailing company’s finances came after it had racked up a total of $31.5bn in operating losses since 2014, the first year for which it disclosed details of its finances.

Now of course not all of that $30 very large was spent upon fighting the tyranny of Transport for London and the Black Cab Mafia. But some of it was, as well as upon writing the software, advertising and so on. You know, getting the thing made and then into popular consciousness enough that people started to use it. So, who is going to do that for this new version? And having paid to do that why would anyone have done so unless they gain a piece of the action?

We could, obviously, suggest that the putative and future cab drivers club together to pay for all of that and why not? But that is the point of the capitalists. They provide the capital that allows new things to be done.

Moaning about the capitalists gaining profits is all very well. But we would urge at least a little thought upon the idea that they spend the capital first, gain the profits - maybe - later. So, deny the profits by all means but where are you going to get your capital from in that case?

Tim Worstall