Richard J. Pierce, Jr

Lyle T. Alverson Professor of Law, George

Washington University

The risk that a two-sided market with strong indirect network effects may tip into a monopoly is well known. The questions of whether this will happen in practice, whether

this creates problems, and if so what can be done to address those problems, are less well investigated. This article addresses these questions in relation to ride-hailing apps in the United Kingdom, also drawing on limited data observations in other countries. UK and other countries’ data show that the emergence of ride-hailing apps has had a major

effect on the wider marketplace, such entrants gaining substantial share in a growing marketplace. The data do not yet permit a firm conclusion as to the inevitability of

market tipping in ride-hailing, but the possibility remains. The article considers alternative regulatory measures which might be prepared or adopted against the possibility of such

tipping. These include revisions of existing regulation to reduce distortions in the wider marketplace; new interventions including enhanced data reporting; measures to prevent

dominant firms from injuring their rivals by such practices as requiring the single-homing of drivers; data-sharing; and price control