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That would surprise me. It's unlikely a dozen apps would be able to coordinate like that. The thing about cartels is the first defector can cut prices and captu
by nerfhammer 6y ago
That would surprise me. It's unlikely a dozen apps would be able to coordinate like that. The thing about cartels is the first defector can cut prices and capture marketshare, which is what we're supposed to believe evil VC funded cutthroat startups are inclined to do. Raising prices to increase profit but reduce revenue growth is the exact opposite of that.
The other hypothesis is that delivery is simply expensive. The driver has to drive to the pickup place, find parking, stand in line potentially for awhile, drive to the delivery, park again, walk to the delivery location to drop off the item. Most of those things an ordinary uber fare would not have to deal with.
- ethbro 6y agoOr, this is more like TicketMaster and less like a free market.
- esyir 6y agoThe concert case single monopoly that controls both part of the source as well as basically all sales is now comparable to the pile of separate delivery services that compete against each other. A claim that all of these have formed a cartel requires strong evidence.
- ethbro 6y agoThe pile of delivery services is effectively 3, right? And 2 of those are potentially combining.
- esyir 6y agohttps://www.statista.com/statistics/1080860/market-share-us-food-delivery-companies/ https://www.statista.com/statistics/1080860/market-share-us-... Looks like a split amongst 4 right now, as far as the big ones go. This doesn't include the smaller startups as well.
- heavyset_go 6y agoThis is naive. Cartels are a market failure, and your argument against cartels existing is that market forces in an ideal world would prevent them. Reminder that Adobe, Apple, Google, Intel, Intuit, Pixar, Lucasfilm and eBay all colluded to keep engineer compensation below market value[1]. [1] https://en.wikipedia.org/wiki/High-Tech_Employee_Antitrust_Litigation https://en.wikipedia.org/wiki/High-Tech_Employee_Antitrust_L...
- Jommi 6y agoWell that's also just a naive view. Industrial Economics takes a deeper look at this for example.