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One ride at a time. The "tech advantage" is not insurmountable. These are, at the core, just apps that let users hail a ride and pay. Uber-Lyft competition has
by dalbasal 7y ago
One ride at a time.
The "tech advantage" is not insurmountable. These are, at the core, just apps that let users hail a ride and pay. Uber-Lyft competition has already demonstrated that ride-sharing doesn't come with an automatic moat. Both drivers and passengers are willing to use multiple apps and both respond to prices. Hence price wars.
The big problems are network effect chicken-egg problems. You need enough drivers and passengers simultaneously. But, this only needs to be solved in one locale at a time.
Uber & Lyft put all their efforts into scale, assuming that winner-take-most dynamics will fix the economics eventually. They didn't.
It's not a terrible idea to start a competitor building a low cost/fee model from day one. Flat fees for drivers might be interesting because once the fee is paid drivers have an incentive to get their money's worth.
It's not an easy win to go after, but not impossible either. Ride sharing is not an airtight market.