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Your use encourages more drivers, which makes it more useful to other riders, and so on. It would be very hard for another ride sharing company to get involved
by hueving 11y ago
Your use encourages more drivers, which makes it more useful to other riders, and so on.
It would be very hard for another ride sharing company to get involved now because there would be no incentive to use yet another app unless the company subsidizes rides or something to entice both users and drivers.
- prostoalex 11y agoUnless the drivers are in an exclusive relationship with Uber, increase in supply of Uber drivers usually leads to increases across the board, as drivers just run multiple apps. Drivers set out to maximize their own utility, not Uber's.
- danieltillett 11y agoThis is what surprised me about Uber's recent efforts to not have their drivers become employees. I was expecting them to use the lawsuits to extract favourable terms from the drivers and lock them into exclusive employment contracts. If they had done that their network would be hard to break, but as it stands now any new competitor is one app away from entering the market.
- prostoalex 11y agoI think they figured they can extract that via market terms, such as bonuses for those driving X+ hours weekly (where X is a fairly large number) or never-ending chain of orders in UberPool.
- danieltillett 11y agoSure if they can keep the drivers at near 100% capacity then this would work, but this is hard to do. A small competitor can piggyback off their network at low cost and be hard to dislodge. It is difficult to extract monopoly profits with an open network.