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Those users who were only in it for the cheap fares would have left anyways in a world where Lyft survives but fares increase to profitable levels. If Uber suc
by hkmurakami 10y ago
Those users who were only in it for the cheap fares would have left anyways in a world where Lyft survives but fares increase to profitable levels.
If Uber succeeds in killing Lyft, they can dictate pricing more effectively and harvest a surplus from the remaining consumers.
- ethanbond 10y agoOkay and then one of the 13 other startups doing this suddenly become able to undercut Uber because they have VCs who are willing to gouge the actual balance sheet in order to put Uber out of business. Crucially, Uber doesn't own the cars nor the drivers. Anyone willing to throw more cash to drivers and take less cash from riders (with the infusion of VC funding) can instantly steal both the supply and the demand from Uber.