Tag: federal regulatory agencies

Google Ventures Chief: Uber’s Long-Term Market Value Could Be at Least $200 Billion

Last month Uber, the San Francisco-based transportation technology company that connects drivers and passengers via its app, raised $1.2 billion in a funding round valuing it at $18.2 billion, making it worth about the same as Hertz Global Holdings Inc. and Avis Budget Group Inc. combined. In a recent Bloomberg interview Bill Maris, the managing partner of Uber investor Google Ventures, said that Uber’s long-term market value could be “$200 billion or more,” about the market value of Toyota.

Maris not only expressed confidence in Uber’s management, he also said that the company could become a large logistics company.

From Bloomberg:

“I am confident in Travis and his team,” Maris told Bloomberg News in an interview at Fortune’s Brainstorm Tech conference in Aspen, Colorado. “His vision is huge and he has showed he can execute,” Maris said of Uber’s co-founder Travis Kalanick.

As Uber disrupts the transportation market around the world, it’s also experimenting with delivery services and could become a huge logistics company with a market value of $200 billion or more, said Maris.

“It’s an incredibly creative team – their growth shows they are clearly onto something,” he said of Uber. But Maris also warned that, like any startup, “it could also go down to zero.”

Uber board member and investor Bill Gurley has said that the company’s market opportunity is between $450 billion and $1.35 trillion per year and that Uber could be considered an alternative to private car ownership. Indeed, Uber CEO Travis Kalanick said in an interview with The Wall Street Journal that the company’s vision is “Basically make car ownership a thing of the past.”

While Uber is certainly innovative it is a long way from making “car ownership a thing of the past” or becoming a large-scale logistics company. That said, it is clear that some investors foresee huge growth in Uber despite the regulatory barriers it has been facing. The technology that allows Uber and other so-called “sharing economy” companies to work is not going anywhere, and when one considers Uber’s growth since it launched in 2009 (it’s now operating in about 150 cities in 41 countries) it is not hard to see why Maris believes the company’s long-term market value could be at least $200 billion.

ATF: Laws are for the Little People

That’s the only message I can take away from the ATF proposal to require Federal Firearm License (FFL) holders to report the sale of two or more semiautomatic rifles that accept detachable magazines in states along the border with Mexico. In other words, this is gun control for the sake of Mexico.

Thing is, the proposal breaks the law. The ATF doesn’t have the authority to do this.

As David Hardy notes at Of Arms & the Law:

There are several violations of the Gun Control Act, as amended by the Firearm Owners’ Protection Act. First, 18 USC §926(b) provides “The Attorney General shall give not less than ninety days public notice, and shall afford interested parties opportunity for hearing, before prescribing such rules and regulations.” This is stricter than the Admin Procedure Act’s general provision for a “reasonable” comment period, and it has no emergency exceptions. ATFE is only giving 30 days’ notice.

Second, the FOPA amendments were intended to cut off future requirements of direct reporting – I say future because the existing regs (including reporting of multiple handgun sales were grandfathered in, but limited to those specific requirements. Thus far and no farther.

The ATF’s action provokes a court contest over the limits of the agency’s powers, which are clearly being exceeded. The litigation will provide another opportunity for Hardy’s excellent article about the legislative history of the Firearms Owners’ Protection Act to get cited in federal court.

All of this is unnecessary and lawless. There is a legitimate way for allowing the ATF to take this action: amend the law. Instead the Executive is ruling by regulatory fiat, damaging and degrading the rule of law. Unfortunately, there’s a lot of that going around these days.

Regulatory Spending Actually Rose under Bush

Analysts across the ideological spectrum generally agree that the government’s regulatory bodies fail far too frequently. However, analysts seem to learn different lessons from this experience.

Washington Post business columnist Steve Pearlstein cites numerous examples of failure and concludes, “It’s time for the business community to give up its jihad against regulation.”

He says:

It hardly captures the breadth and depth of these regulatory failures to say that during the Bush administration the pendulum swung a bit too far in the direction of deregulation and lax enforcement. What it misses is just how dramatically the regulatory agencies have been shrunken in size, stripped of talent and resources, demoralized by lousy leadership, captured by the industries they were meant to oversee and undermined by political interference and relentless attacks on their competence and purpose.

It’s true that regulators often do the bidding of the industries that they regulate. But “regulatory capture” is a long recognized phenomenon that undermines the contention that the government is well-suited to be a watchdog.

Regardless, is Pearlstein right that federal regulatory agencies were “dramatically” shrunk? Not according to a new study from George Washington University and Washington University in St. Louis. The figure shows that regulatory spending actually rose an inflation-adjusted 31 percent during the Bush administration (FY2002-FY2009):

Similarly, regulatory staff jumped by 42 percent under Bush’s watch: