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If, for example, Uber crushes all competition, then they can raise fares and lower partner payments and make a bigger profit.
by cloudwalking 9y ago
If, for example, Uber crushes all competition, then they can raise fares and lower partner payments and make a bigger profit.
- trevyn 9y agoOr if they become the self-driving service of choice, they can lower fares and capture a larger portion of the broader transportation market and make a profit.
- debacle 9y agoEvery time Uber scores a municipal victory, they're lowering the barrier to entry for competitors.
- josephmerz 9y agoSo true
- tmh79 9y agonot necessarily true. Uber is developing relationships with the regulators in all of their markets, a highly local endeavor. It's possible, even likely, that they are going to use these relationships to their own advantage when launching self driving cars in different markets.
- candiodari 9y agoAnd why would governments, that haven't allowed even private railroads in the past century, allow that to happen ? If you put it like that, no government will stand for that. They can even look good on jobs while destroying uber.
- valuearb 9y agoAnd increases the size of their moat.
- Y7ZCQtNo39 9y agoRaising fares would open more opportunities for competitors to enter the space.
- sfifs 9y agoThis "raise prices after crushing competition" piece is something that practically never happens unless you manipulate governments to institute rules that preserve Monopoly. Even then as SpaceX & Uber showed, rent seeking gets punished by market. If they raise prices significantly, someone else will come at a lower price with lower service quality (as already happens in Asia) and take a share of more price sensitive segment of the market.