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I'm sampling the world of commission-based connectors in a deliberately wide-ranging way. We could also include Hollywood agents (often 10%; sometimes 15% or ev
by GCA10 7y ago
I'm sampling the world of commission-based connectors in a deliberately wide-ranging way. We could also include Hollywood agents (often 10%; sometimes 15% or even 20%). Or Eventbrite, where the base formula of 3.5% +$1.79 translates into an overall 14%. (I'm using an average ticket price of $17, which was correct in 2014.)
No comparison to other businesses is exact, but the basic point is that if we make the rounds of commissions charged throughout the economy, not many fields have settled out at the above-20% level that Uber is currently defending.
- freewilly1040 7y agoThe idea makes sense but I think you need to exclude rare big ticket transfers like real estate. The Eventbrite comparison honestly makes 22% sound reasonable. Uber does a lot that Eventbrite doesn't do: - Make the market (you don't go to Eventbrite to find an event to go to, you find an event you want to go to and get routed through Eventbrite) - Provide a form of ID verification on both buyer and seller - Resolve disputes (Eventbrite probably does something like this at much lower volume). - Navigate the regulatory environment. - Provide real time assistance throughout the transaction (ie navigation for both buyer and seller) Not to mention, event at that 14% Eventbrite stock is down nearly 50% on the year.