Taxi drivers in France rioted yesterday to prevent Uber from competing with them. They attacked vehicles on the mere suspicion that they were working for that company. They broke windows on cars carrying tourists. It was a kind of economic terrorism. Even a left-liberal rock star was upset!
France is one of the most heavily regulated and centralized states in the Western world. But Uber represents the new forces of decentralizing competition that it may ultimately be powerless to block. While the French government appeared to take the side of the violent strikers today, it will have difficulty in stopping this kind of competition without deploying coercion unacceptable in a democratic society.
Uber is essentially an app that connects people who want to make a mutually beneficial transaction. Other apps will connect those who want to make other transactions—for plumbing, gardening or housework. These services will be less expensive than current services, whose cost is inflated by regulations, not least of which are those designed to protect incumbents.