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The assumption here is that what consumers expect is reasonable, realistic, and sustainable, which ain't necessarily so. If some billionaire gave away chocolate
by wool_gather 7y ago
The assumption here is that what consumers expect is reasonable, realistic, and sustainable, which ain't necessarily so. If some billionaire gave away chocolate bars for a couple of years then stopped, would we have any sympathy for people who thought that they should still get free chocolate all the time? The ride hailing companies have deliberately underpriced their product.
At some point their chickens will come home to roost. If you take a price that's too low and multiply it by tremendous numbers of units sold, way more than the competition even, you [still end up with not enough money][0].
[0]:http://www.giantitp.com/comics/oots0135.html http://www.giantitp.com/comics/oots0135.html