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Yeah right. But other than self driving cars I fail to see how they'll un-dig themselves out of the money losing setup before burning through all the fresh cash
by YjSe2GMQ 7y ago
Yeah right. But other than self driving cars I fail to see how they'll un-dig themselves out of the money losing setup before burning through all the fresh cash collected in the IPO. Hopefully I'll be wrong.
- kenneth 7y agoI see this criticism about Lyft and Uber all the time, but I don't understand how both companies could not at some point simply raise their prices to make the unit economics work. Sure, they'd lose some business… but given there is almost no fixed costs to running their business, they'd still have large profitable businesses. The only reason they don't is they're fighting for marketshare with each other while in growth mode. But once both companies have established their places in the world, saturated their markets, I don't see why they wouldn't simply raise their prices accordingly. Revenue would drop, profit would rise. Eventually, the market reach an equilibrium. Note they could also just raise the share they take for themselves and prices simultaneously. If prices go up 20% and they up their fee from 20% -> 33%, their income goes up 60% and their unit economics look a LOT better.
- hef19898 7y agoWell, up to now the mainly compete on price and booking comfort (apps) with traditional taxis. So taxi prices are somehow giving an upper price limit, maybe plus something for the better CX.
- CPLX 7y agoIf they invented a high temperature superconductor that could ease their money problems as well, but neither of these ideas have anything to do with their current business model.