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It depends a lot on how much ridesharing companies pass on any labor cost decreases to consumers, and consumers' demand curves. Personally, my ridesharing use
by opportune 7y ago
It depends a lot on how much ridesharing companies pass on any labor cost decreases to consumers, and consumers' demand curves.
Personally, my ridesharing use is a mix of relatively inelastic demand and elastic demand. Inelastically I am almost always going to use ridesharing to get to/from the airport, go places in other cities where I don't have a car and public transportation is too complex to figure out. I will usually use ridesharing if it is significantly faster and only $10 or so more expensive compared to public transportation that I can figure out. The only thing I would really reduce is using ridesharing to go out drinking - but if that becomes significantly cheaper, maybe not
- mdorazio 7y agoTotally agree, I just think that on average, the net result in a recession will be less rideshare usage, even with lower costs. For example, people are probably more likely to ask a friend/family member to take them to the airport in a recession scenario than they are today. If you've lost your job, a $20 ride can be a significant expense for a large portion of potential customers.