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If they all drive for Lyft, they won’t get Lyft’s regular wages for a day, supply and demand dictates there won’t be enough demand and they’ll get lower wages.

by jquery 8y ago

Tyrek 8y ago
If you assume rideshare demand remains consistent and that riders just switch over to Lyft (which doesn't seem entirely unreasonable), then presumably the overall supply/demand curve remains fairly consistent. Obviously some fuzzing around the edges will remain, but otherwise the broader conclusion holds?
ISL 8y ago
True, unless enough Uber customers jump ship to Lyft to support Lyft's demand.
AimForTheBushes 8y ago
Not necessarily. I use both apps. I'm sure a lot of other people do too. More people would use Lyft if it's the cheaper option (and not surging like Uber would be in this scenario).
DINKDINK 8y ago
>supply and demand dictates there won’t be enough demand and they’ll get lower wages. Reductive. Your model assumes demand for Lyft remains constant while supply increases. This ignores the fact that supply is dropping at Uber, which causes a price increase, which causes demand to shift else where...to Lyft which increases demand.
- jquery 8y ago
  Unlikely. While you and I may comparison shop, most people aren't going to download a new app, enter their CC information, etc., just to skip a short surge period. I don't check Taxi prices when Uber has a high surge during a storm. Additionally, many drivers who use both apps will simply stop driving, so Lyft is likely to see a surge as well.
  - xref 8y ago
    “most people aren't going to download a new app” That assertion needs some data to back it up. In fact I’d put my money on “most people” having both Uber/Lyft installed.
  - DINKDINK 8y ago
    >most people aren't going to download a new app Fair counter. There will be some lock in. Given that both platforms have similar pricing means that there are strong arbitrage forces at play that keep them in check.

If they all drive for Lyft, they won’t get Lyft’s regular wages for a day, supply and demand dictates there won’t be enough demand and they’ll get lower wages.

by jquery 8y ago

If they all drive for Lyft, they won’t get Lyft’s regular wages for a day, supply and demand dictates there won’t be enough demand and they’ll get lower wages.

Tyrek 8y ago

If you assume rideshare demand remains consistent and that riders just switch over to Lyft (which doesn't seem entirely unreasonable), then presumably the overall supply/demand curve remains fairly consistent. Obviously some fuzzing around the edges will remain, but otherwise the broader conclusion holds?

ISL 8y ago

True, unless enough Uber customers jump ship to Lyft to support Lyft's demand.

AimForTheBushes 8y ago

Not necessarily. I use both apps. I'm sure a lot of other people do too. More people would use Lyft if it's the cheaper option (and not surging like Uber would be in this scenario).

DINKDINK 8y ago

>supply and demand dictates there won’t be enough demand and they’ll get lower wages. Reductive. Your model assumes demand for Lyft remains constant while supply increases. This ignores the fact that supply is dropping at Uber, which causes a price increase, which causes demand to shift else where...to Lyft which increases demand.

jquery 8y ago
Unlikely. While you and I may comparison shop, most people aren't going to download a new app, enter their CC information, etc., just to skip a short surge period. I don't check Taxi prices when Uber has a high surge during a storm. Additionally, many drivers who use both apps will simply stop driving, so Lyft is likely to see a surge as well.
- xref 8y ago
  “most people aren't going to download a new app” That assertion needs some data to back it up. In fact I’d put my money on “most people” having both Uber/Lyft installed.
- DINKDINK 8y ago
  >most people aren't going to download a new app Fair counter. There will be some lock in. Given that both platforms have similar pricing means that there are strong arbitrage forces at play that keep them in check.