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Out of curiosity how would this service ever make money? Won't it become very capital intensive as it scales while the customer base appears to be driven by pri
by danieltillett 11y ago
Out of curiosity how would this service ever make money? Won't it become very capital intensive as it scales while the customer base appears to be driven by price.
- raywu 11y agoBenchmarking against all other modes of transportation definitely makes commuting more of a commodity. All-in Cost of car ownership in a city or all-in cost of multimodal transportation (uberpool to train to bus to walking) are two ends of the spectrum people price against. Scale is actually a great thing for this business.
- danieltillett 11y agoRay I am curious how close to the uber end your service falls? Have you done any experiments in how price sensitive your customers are? My gut feeling is that they are expecting uber like levels of service combined with public transport level pricing, but I am more than happy to be corrected.
- pbreit 11y agoI'm not sure what you mean. It's not free.
- danieltillett 11y agoI know it is not free, but capital intensive industries are not the flavour of the month right now. My question is really how do you maintain decent margins when you have very price sensitive customers. You are effectively offering a Uber-like service with a customer base expecting public transport level prices.
- tedmiston 11y agoGet people to become habitual users then raise the price and get businesses to pay for it instead of consumers. It kind of looks like MagicBus' marketing is already setting up to do this.