If you’ve ever been stranded late at night without a taxi in sight, then you probably don’t need to be convinced that services like Uber and Lyft, which allow consumers to order cars directly from their smartphones, have brought innovation to an industry not exactly known for its efficiency.
Yet for how much positive feedback they’ve received from the general public, these kinds of game changing companies have nonetheless come up against regulatory challenges across the United States—even though their expansions have been fueled by torrid consumer demand.
Take Uber, which was valued at more than $18 billion in June, according to the New York Times’s Dealbook blog. The San Francisco, California-based company, which collects roughly one-fifth of the money generated by each successful ride, also reportedly logged more than $1 billion in gross revenue last year—not bad for a four-year-old startup.
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