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I have Lyft and Uber on my phone. I just pick the cheapest one when I need a ride. And drivers also have Lyft and Uber. And they just pick the one that offers t
by elcomet 7y ago
I have Lyft and Uber on my phone. I just pick the cheapest one when I need a ride.
And drivers also have Lyft and Uber. And they just pick the one that offers them the highest rates.
No network effect here.
- AnimalMuppet 7y agoThere's still a network effect; it's just a duopoly. The third outfit trying to make this work can't, because they don't have anyone with their app on the phone, because they don't have any drivers, and they don't have any drivers because nobody wants to drive for them because they don't have any customers.
- zepto 7y agoSeems like it would be trivial for someone to do exactly what Uber has done - pick a location and undercut everyone on price using predatory pricing. People will install a new app for a buck or two savings, and drivers will install a new app to get a 5% raise.