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>They don't need to win every city, just take a slice of the most profitable city from Uber. Suddenly your 10 million per year profit is costing Uber 10 times t

>They don't need to win every city, just take a slice of the most profitable city from Uber. Suddenly your 10 million per year profit is costing Uber 10 times that as they can't undercut you and still be highly profitable. If Uber is operating in 100 cities and you turn up in their most profitable one, they can just drop the prices and make a loss in that city until you leave. I agree with you, maybe they don't kill off lyft and don't get to the point that they have the scale to implement their strategy, but that doesn't stop it being a decent strategy to aim for.

Retric 8y ago
> If Uber is operating in 100 cities and you turn up in their most profitable one, they can just drop the prices and make a loss in that city until you leave. That gets insanely expensive in their most profitable city as you not only forgo profit you also need to drop the pice enough that people pick you. And it’s never going to be just one company in just one city that tries to compete. The might be able to pull it off, but not while being a 100 Billion dollar company. Remeber, long term their options are be profitable or fail. They can’t continue to attract money if they had a monopoly and still can’t be profitable.