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A ride sharing app is a dual marketplace. If you're cutting the price for riders past a point, you're cutting the pay for drivers.
by eric-hu 7y ago
A ride sharing app is a dual marketplace. If you're cutting the price for riders past a point, you're cutting the pay for drivers.
- AnthonyMouse 7y agoThat's assuming the incumbents are giving the premium for those customers to the drivers. But even if they were, the drivers are in a competitive labor market. If you get the customers with lower prices then you can also get the drivers because they'd rather be working for your rate than not at all.
- zonidjan 7y agoBut you will never get customers without drivers and you will never get drivers without customers. Plenty of Uber/Lyft competitors have tried and failed. Heck, a few different companies tried here in Austin once we grew a spine and banned Uber/Lyft, only to die as soon as they came back to town.