Industry requires economies of scale (Uber case)

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Economies of scale help producers to lower their cost by producing the next unit of output at lower costs. When new competitors enter the market, they will have a higher cost of production, because they have smaller economies of scale. Economies of scale positively affect Uber case. … "Industry requires economies of scale (Uber case)" has a significant impact, so an analyst should put more weight into it. This qualitative factor will lead to a decrease in costs. "Industry requires economies of scale (Uber case)" is a difficult qualitative factor to defend, so competing institutions will have an easy time overcoming it.

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