2 ms·
They don't need to increase prices in established markets because they are already profitable in those. So whenever they run out of cities deemed viable to expa
by lhorie 8y ago
They don't need to increase prices in established markets because they are already profitable in those. So whenever they run out of cities deemed viable to expand into (and they will because the number of cities in the world is obviously finite), then they will no longer need to subsidize growth costs in new cities via profits from established cities.
The main difference between Uber and Lyft is that Uber is already in a lot more cities than Lyft, so if Lyft wants out of the subsidizing game, they either have to settle for being in less cities or somehow significantly outdo Uber in terms of growth cost efficiency when penetrating new cities where Uber/others already operate.