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Let Me Ride: No Short-Cuts In the Antitrust Analysis of Ride Hailing

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In Let Me Ride: No Short-Cuts In the Antitrust Analysis of Ride Hailing, authors Daniel Bitton, David Pearl, and Patrick Shaw analyze the extent to which the centralized pricing algorithms of popular ride-hailing apps like Uber and Lyft could be considered unlawful price fixing under Section 1 of the Sherman Act. The authors argue that even if drivers are considered independent contractors rather than employees, centralized ride-hailing pricing algorithms should be analyzed under the rule of reason regardless of whether the pricing algorithms represent unilateral pricing decisions by ride-hailing companies, a series of vertical agreements, or a series of horizontal agreements. The authors conclude by arguing that under a rule of reason framework, centralized pricing algorithms would likely be found procompetitive because these algorithms have increased the output, quality, and efficiency of ride-hailing services in a transportation sector that is still marked by vigorous competition.