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What's to stop Uber from slowing the burn via an increase in base prices? People would still use Uber as long as it's A) more convenient than other transportati

What's to stop Uber from slowing the burn via an increase in base prices? People would still use Uber as long as it's A) more convenient than other transportation B) better quality rides than cabs and C) just a little cheaper than cabs. There are surely other forms of revenue they can spin up too, but this seems to be pretty straightforward, especially in markets where they have already decimated local taxi firms.

misun78 9y ago
Increased competition. Lyft is burning through money at an unprecedented rate to catch up with Uber given that they smell blood this year and investors ala Google are willing to subsidize the burn. At some point, this has to stop but 2017 does not seem to be the year. Source: Lyft pushes back profitability after increased burn - https://techcrunch.com/2017/11/14/unpacking-lyfts-projected-financials/ https://techcrunch.com/2017/11/14/unpacking-lyfts-projected-...
- pishpash 9y ago
  Looks like the easy Fed money made it into consumers' pockets after all.
- blhack 9y ago
  >Increased competition. Maybe I'm weird, but: 1) I don't even look at what the price of lyft is. So they could up the price by a significant percentage I wouldn't even notice. 2) Even if Uber was more expensive than lyft, I would almost definitely still take uber.
  - misun78 9y ago
    You're not weird and this is precisely why Uber is still the market leader. But there is a cohort, in some specific areas where Lyft's network is on par with Uber's such that price, and more specifically targeted discounts, do play a part. Lyft can analyze which one of its riders has not taken a ride in a while (and is hence presumably using Uber) and target them with discounts.
    - pishpash 9y ago
      Lyft just can't shake the ... downmarket vibe.
  - ironjunkie 9y ago
    yes you are weird. Every time I take an "expensive" ride (let's say more than 10$), I open both apps in parallel and take the cheapest. Even sometimes cancelling one to get the other if the price changed meanwhile.

misun78 9y ago

Increased competition. Lyft is burning through money at an unprecedented rate to catch up with Uber given that they smell blood this year and investors ala Google are willing to subsidize the burn. At some point, this has to stop but 2017 does not seem to be the year. Source: Lyft pushes back profitability after increased burn - https://techcrunch.com/2017/11/14/unpacking-lyfts-projected-financials/ https://techcrunch.com/2017/11/14/unpacking-lyfts-projected-...

pishpash 9y ago
Looks like the easy Fed money made it into consumers' pockets after all.
blhack 9y ago
>Increased competition. Maybe I'm weird, but: 1) I don't even look at what the price of lyft is. So they could up the price by a significant percentage I wouldn't even notice. 2) Even if Uber was more expensive than lyft, I would almost definitely still take uber.
- misun78 9y ago
  You're not weird and this is precisely why Uber is still the market leader. But there is a cohort, in some specific areas where Lyft's network is on par with Uber's such that price, and more specifically targeted discounts, do play a part. Lyft can analyze which one of its riders has not taken a ride in a while (and is hence presumably using Uber) and target them with discounts.
  - pishpash 9y ago
    Lyft just can't shake the ... downmarket vibe.
- ironjunkie 9y ago
  yes you are weird. Every time I take an "expensive" ride (let's say more than 10$), I open both apps in parallel and take the cheapest. Even sometimes cancelling one to get the other if the price changed meanwhile.