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1. This exact program they're launching helps build a barrier (subscription) 2. Uber Pool requires a large number of drivers and customers to make it work. Th
by tuna-piano 10y ago
1. This exact program they're launching helps build a barrier (subscription)
2. Uber Pool requires a large number of drivers and customers to make it work. This is a real network effect and benefit, as having 2-3 customers in a car is more efficient than 1. This requires having other customers on a similiar route.
3. Customers want the closest car to them, meaning the company with the most cars gets a benefit
4. There are driver and customer acquisition and switching costs
- coralreef 10y agoI'm not sure that Uber offering some sort of subscription model creates any sort of barrier to entry for competitors wishing to participate in the market.
- guitarsteve 10y agoSure it does. If you already have an Uber subscription, then you're comparing $2 for a subscription-subsidized Uber ride versus $(more) for a ride from Lyft or some other competitor. The competition won't be able to compete on price at that level.
- LordHumungous 10y agoHalf the time I take an Uber pool I end up riding alone. My guess is the margins on it are not stellar.