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Businesses where you burn capital on price wars are low margin businesses.
by joshe 8y ago
Businesses where you burn capital on price wars are low margin businesses.
- treis 8y ago(1) Low margin is probably OK given the enormous market Uber/Lyft will share. (2) They won't actually have to burn capital. No one is going to get into a price war they obviously can't win.
- joshe 8y ago1) We totally agree, ride hailing is a low margin business. 2) Yes! As long as Uber/Lyft act like low margin businesses no one will compete with them. This means they have no pricing power.