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Lyft has plenty of revenue to be sure. It also has lots of fixed costs. You can't just "dial back" paying drivers. I also get the impression that the costs of
by britch 8y ago
Lyft has plenty of revenue to be sure. It also has lots of fixed costs. You can't just "dial back" paying drivers.
I also get the impression that the costs of rides are artificially low right now. Lyft is subsidizing them to encourage use. If the true cost of a Lyft is about the same as a cab, I can say personally I'd be more inclined to take public transit or a cab than I am now.
- bunderbunder 8y agoI think you mean variable costs. Fixed costs are costs that are fixed regardless of the amount of goods or services provided.
- smileysteve 8y agoIn the US, I'd prefer rideshare over taxi in most situations. Part of this is vehicle quality, route quality (guaranteed to use maps). The other big part is lessened tipping culture for now (if Uber and Lyft start suggesting 15+% I'd leave pretty rapidly.)