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It's a sharing economy, as in there is little room for profit - it's all break-even business, the producer surplus shared completely with the consumer. Ok I ma
by meric 10y ago
It's a sharing economy, as in there is little room for profit - it's all break-even business, the producer surplus shared completely with the consumer.
Ok I made that meaning up - but still, think about it.
- crpatino 10y agoSeriously? Do you think Kalanick has no expectation to turn a profit? The only reason Uber operaters below costs right now is because they still have millions upon millions of VC money to burn, AND because those millions can be turned into further market penetration. They do not share out of the goodness of their hearts, they are merely positioning themselves to extract even biger surpluses in the future.
- thanatropism 10y agoHere in Rio Uber doesn't have much space to hike prices before local yellow cabs become much cheaper. Uber seems to arrive at new locations with offering price savings that pretty much amount to dumping, and would be strongly opposed by consumers and antidumping regulators (the usual pushback doesn't come from them) if established cab services weren't such an annoying, low-level-of-service monopoly. But hey, yellow cabs here have improved a lot (better cars, better service) and prices are approaching parity.
- hx87 10y agoIt's almost as if competition and a lack of hard caps were a good thing.