http://www.nbcnews.com/tech/innovation/ubers-wild-2014-can-lawsuits-protests-bring-it-down-n265536

This article discusses Uber and the disruption it has caused in the cab industry.  The article notes that the average cab driver doesn’t work for a large corporation.  They instead work as a contractor, leasing a medallion for a very high fee.  However, those who own the cab medallions being leased are not as affected by Uber as these contractors because they receive their fee regardless of changes in the market.  Consequently, medallion owners are less likely to invest in new technology similar to Uber to assist the contractors running their fleet.  The article also discusses the legal, safety and privacy issues created by the app, and the lack of laws in place regulating the Uber business model.  Uber is a prime example of Schumpeter’s “creative destruction.”  And as with any profitable market, other firms, such as Lyft, Sidecar, and Gett are entering the scene in an attempt to capture market share.  As this new technology changes the way we do things, people with a stake in the old business model will continue to lobby their interests and litigate.  To this point, Uber seems to be succeeding, as it has expanded to 250 cities around the world, with investors telling the company that it is now worth $40 billion.