> and then once the competition is dead, prices rise to way higher than they ever were before
Though it hurts the current businesses, the high prices won't last long. New competitors will see the chance in same services with lower prices and they'll go in. The problem is actually regulation and lobbying, which making new players harder to emerge.
> The problem is actually regulation and lobbying, which making new players harder to emerge.
Regulation in many cases, especially in those I mentioned, makes sense:
- Taxis should not be allowed to discriminate for anything, especially not skin color. Also, at least in Germany the fares are regulated to ensure people are not ripped off in "hot times".
- Hotels, and most AirBnBs are de facto hotels, are regulated to prevent issues with fire safety, theft, privacy, noise complaints (it's illegal to build hotels in residential zones for a reason) and many others.
- Something like Grubhub putting their own intercepting phone number in Google results via shady SEO tactics and charging people for any call is just ripe for abuse by competitors, additionally it's extremely unfair.
I don't mean those kinds of regulation, some regulation are definitely needed for the better.
However there are some regulation that are made for the sole purpose of defending the existing players and keeping new players from coming into the market.
Some licenses have requirements like that, such as requiring some documents or certification before operating, meanwhile the existing players may not have them.
Though it hurts the current businesses, the high prices won't last long. New competitors will see the chance in same services with lower prices and they'll go in. The problem is actually regulation and lobbying, which making new players harder to emerge.