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> There is the possibility that they are taking too large a cut, and not charging enough to be profitable. How? How can their margin be too high and simultaneo
by morgante 10y ago
> There is the possibility that they are taking too large a cut, and not charging enough to be profitable.
How? How can their margin be too high and simultaneously not enough to be profitable?
The only other alternative is that you think consumers should pay higher prices.
You present two perspectives, but only one can be correct: either it takes 20% to support the service, or it doesn't.
- meira 10y agoWell, if customers paid 20% more, both Uber and drivers woould get more. And they would lose appeal compared to táxi, só Uber prefers to earn less and forces drivers to do the same in the fate of market share lol.
- morgante 10y agoIf Uber charged more than taxis, demand would drop substantially and Uber drivers would be out of a job. Nobody is forcing them to work for Uber.
- jdmichal 10y agoAh, the good old "no one forced him" gig. Yes, no one literally went up to an Uber driver and told them to become one. Same way that no one literally goes up to a homeless immigrant and tells them to steal food [0]. But it's folly to pretend that the "invisible hand" of economics doesn't have a strong part to play in such decisions. [0] http://www.nytimes.com/2016/05/04/world/europe/food-theft-in-italy-may-not-be-a-crime-court-rules.html http://www.nytimes.com/2016/05/04/world/europe/food-theft-in...
- jdmichal 10y ago> The only other alternative is that you think consumers should pay higher prices. I don't think anything in this particular matter. I don't use Uber and I don't work for Uber, so I don't really have a dog in this race. However, I don't see how Uber not charging enough isn't a valid viewpoint.