Two topics made the headlines recently.
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The first headline related to artificial intelligence: the other week for the first time a machine passed the Touring test. While you can find the details of the Touring test here let’s sum it up like this: the first computer software has succeeded to make a human believe that it was a human too. If the hypothesis, expressed in earlier blogs, is correct that under the complexity paradigm information asymmetries will always and immediately get exploited you start to wonder when you will get phished.
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The second headline concerns an App: Taxi drivers in Berlin, London, Paris, Sao Paolo and Chicago were striking and protesting. Now, that’s something new. For the first time taxi drivers coordinated their strike action across towns, cities, countries and even continents.
They were striking against a mobile app called UBER. This app, like Wundercar and others, enables users to book rides from people who happen to “pass by”. Officially, the rides they book are thus private rides from a place to a place on the route of the drivers – but actually, the drivers are people who happen to have a car and the time to offer this service. Factually, a Berlin court just handed out a provisional injunction. However, Uber decided to ignore for the time being. Of course the private drivers have a competitive advantage over the classic cap drivers since they pay lower insurance – probably for passenger and the car – and perhaps no tax. And the app providers have of course located their company in one of the low tax countries around the global or within the EU.
What is remarkable about this strike is the quick response the sector has shown. Since the app offers rides for as little as a 2/3 of the normal price taxi drivers are certainly right to assume that it would cut into their existing business. Compare that to the quite rise of Amazon and you start to wonder whether times are not changing for internet start-ups that want to cut directly into established sectors.
Yet, also the back-end of this business is interesting since the UBER-drivers have to hand over 20% of their fair to the app providers. This is still less than the cap drivers who in some cities have to hand over up to 60%. But UBER is everything but a small fish in terms of capital. The start-up has been able to collect 900 mill € from investors and its current value is estimated to be 13 bill €. And guess who has been one of the big investors? Yes, it is Google! Start to wonder whether Google might not already be thinking of an autonomous cap car fleet driving through town to pick up UBER-clients? To be continued at a court close to you.