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This reminds me of an airline actually. Uber is "the first airline" for ride sharing service. Lyft is "the second airline". The way that you beat an airline i
by unreal37 7y ago
This reminds me of an airline actually.
Uber is "the first airline" for ride sharing service. Lyft is "the second airline".
The way that you beat an airline is not to copy it's service. It's to figure out it's most profitable routes and provide cheaper service on only those routes. Ignore the unprofitable routes.
If Uber can make a good profit in one city, and loses money in hundreds of other cities, someone will come along and compete with them in just the one city.
You don't need $20 billion to beat Uber. You only need to compete in their 5 most profitable cities.
- sjg007 7y agoAirlines are a good analogy. I imagine we will see Uber and Lyft miles/points as a thing. Maybe even status as a thing.. A good comparison to Uber is starbucks. Their average sale is $5 but they’ve managed to grow and grow, mostly by investing in their “partners”. Uber could do something similar. The podcast masters of scale has a good segment on Starbucks.
- unreal37 7y agoRight, how do the airlines hang on to their customers with cheaper competitors? Points, upgrades and luxury. Imagine getting Uber Black upgrade for free if you've done 100 rides with them in a year....