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Uber's sales pitch was always "We're going to charge artificially low prices for a while in order to crush the competition, and, once we achieve monopoly status
by mumblemumble 6y ago
Uber's sales pitch was always "We're going to charge artificially low prices for a while in order to crush the competition, and, once we achieve monopoly status, we'll start jacking prices up." It's hard for me, as a consumer, to see what they're doing as a benefit to me in the long term.
Given that that's the basic business strategy behind all of these hyper-capitalized startups, I have similar suspicions around food delivery companies. As it stands, I'm guessing that it's affecting me more immediately, too, as restaurants raise their prices in order to cover whatever large cut the GrubHubs and DoorDashes of the world are taking. Similar to how everything's just 5% more expensive now to cover the money that's being skimmed off of every transaction in the form of credit card fees that have been justified to consumers with the promise that they'll give 1/5 of what they took back to you in the form of "rewards".