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>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 sup
by DINKDINK 7y 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 7y agoUnlikely. 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 7y 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 7y 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.