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Things are "worth" the price that the market will bear. If rides were worth more, at the current supply, then Lyft would charge more. Why should a new car be v
by xapata 10y ago
Things are "worth" the price that the market will bear. If rides were worth more, at the current supply, then Lyft would charge more.
Why should a new car be valued by market principles but rides not?
To increase price, you must decrease supply.
- CodeWriter23 10y agoThat's hilarious. Uber and Lyft alike are running on a VC-subsidized business model. Leaving the comparisons of personal transport solutions aside, neither of them are turning a profit.
- xapata 10y agoDoesn't matter. I mean, we can argue about the intrinsic value of a ride, but the only way to know the market value of something is to sell it. Or to buy it, if you're on the other side of the situation. I'm not saying the value won't change in some years when the VC money dries up and the market shifts. Of course it will. To think otherwise would make me like the taxi medallion owners complaining about their mistaken investments. Another way to look at it is that buying a car is a bad investment, because it's tough to recover the cost of ownership. Perhaps people buy them for non-business purposes and are driving the price up.