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I don't understand this point of view. Isn't the better, more convenient service enough to warrant enough revenue to pay what a company with employees would pa
by pjmorris 11y ago
I don't understand this point of view. Isn't the better, more convenient service enough to warrant enough revenue to pay what a company with employees would pay? I don't see why the business model, additionally, has to cut employee costs, beyond maximizing profit. But there should still be enough profit on the revenue side.
- nopzor 11y agoIt isn't a matter of "enough" profit. Uber wants to get so big, and make prices so low, that they decimate current competitors and discourage future ones. It's a winner-take-all model; a land grab. The drivers are just along for the ride. Low(er) pricing not only supports faster growth, but it gets enabled by the scale and efficiency of its network. That becomes a moat for Uber. Raising pricing can come later, and with autonomous cars in the future. Getting the global network huge is only the precursor.
- pjmorris 11y agoGetting big is a goal, not a business model. Standard Oil took decades to achieve monopoly, Uber's goal may be to optimize the speed-to-monopoly, but that's a separate issue from business model.