The consensus of 11 economists interviewed by Reuters, however, suggests an entirely different scenario, one of perpetual competition in a business with relatively few barriers to entry. Ten other economists who have studied ride-hailing agreed that the growing industry, which UBS estimates to be a $40 billion market, has room for at least two successful players, and perhaps a few smaller ones. The industry, they said, has none of the elements that traditionally have enabled single companies to control a sector. Ride-services, by contrast, are relatively cheap to start, depend on contract labor with no inherent loyalty or specialized skills, and have free apps that can be downloaded in seconds. The question of whether on-demand ride services will remain open to new players has vexed startups and investors since Uber started the industry seven years ago.

Source: Standard Digital August 26, 2016 05:03 UTC