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Isn’t this largely a case of early adopter Uber drivers planning on, and feeling entitled to, temporary market launch subsidies being made permanent? It remind
by chriselles 7y ago
Isn’t this largely a case of early adopter Uber drivers planning on, and feeling entitled to, temporary market launch subsidies being made permanent?
It reminds of a friend who put together a few of the first Subway franchises here in NZ.
I suggested he consider selling.
He asked why.
I responded by sharing with him how Subway will not stop adding new franchises until there is one on every corner of every intersection.
Subway makes money on franchise fees and incremental sales,NOT average store sales(which plateau and sometimes collapse depending on cannibalisation).
Uber is not a franchise, but I think the gig economy might require some similar plain language disclosure on how launch market subsidies are temporary and ethereal, not sustainable.
Expecting launch market subsidies to remain indefinitely is dangerously naive and foolish.
But companies like Uber could probably do a better job of communicating that and managing driver expectations in the market they manage.
Trust comes in a lot of flavours.