Uber’s strategy has been to break these regulations, establishing its service first, and then fighting attempts by regulators to

Question

1 month ago

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Uber’s strategy has been to break these regulations, establishing its service first, and then fighting attempts by regulators to

shut the service down. This goes along with the old saying that "do first, ask questions later." Is this business approach viable globally in the long run?

Business

1 answer:

Katen [3.2K] · Answer 1 · 2026-03-07T15:32:27+03:00

Answer: No, it is not.

Explanation:

Uber, by initially establishing itself and subsequently contesting regulations, puts itself at risk globally. This is due to the fact that regulators hold the authority to modify the laws that oversee Uber if they perceive it as having an unfair edge or if its presence is harmful to society. Uber has faced numerous allegations of violations such as tax evasion and serving as a means through which criminal activity may occur due to insufficient background checks.

Returning to the tax issue, if regulators suspect that Uber is evading taxes, they could enact laws that would either hike Uber's prices or shut it down in a locality, significantly impacting Uber's financial performance.

This strategy is unwise as regulators dislike being challenged and will strive to assert their authority. It is simply unsustainable, as evidenced by Uber's multiple halts globally.