Comment on Airbnb's and Uber's relation with perfectly competitive markets

Airbnb operates in the hospitality industry while Uber operates in the Taxi industry. These two firms are making use of the internet to increase competition in their industries. The increase in competition is making these markets come close to perfect competition as explained below:

• The number of suppliers in these markets is increasing. Airbnb permits those persons who own houses to rent it to travelers while Uber allows any person with a modern vehicle to provide taxi services. These actions by Airbnb and Uber are increasing the number of suppliers and thus making the markets near perfect competition.
• Increase in the number of buyers. Since the services are being facilitated over the interest, the firms can reach customers all over the globe.
• Lowering barriers to entry. Under perfect competition, there are no barriers to market entry. Airbnb and Uber are making it easier for new suppliers to enter the market. This lessening of entry barriers is making the markets to near perfect competition.