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I agree, but imagine that this Uber/Lyft experience was not subsidized by VC money. Would you be willing to pay 2x of a typical taxi to get this enhanced experi

by aabhay 6y ago

I agree, but imagine that this Uber/Lyft experience was not subsidized by VC money. Would you be willing to pay 2x of a typical taxi to get this enhanced experience? Probably most people would stick with the street taxi in that case...

smsm42 6y ago
> subsidized by VC money Wait, so I get a comfortable ride, I get it fast, I get it cheap, somebody else pays for the majority of it, that somebody else has tons of their own money, not coming from my taxes, which they spend willingly on giving me a good cheap ride - and somehow this is a bad thing?
- LunaSea 6y ago
  How long do you think that this will stay like this? After competition dies out prices will skyrocket.
  - smsm42 6y ago
    > How long do you think that this will stay like this? If I knew how to answer questions like that, you'd see me on TV giving interviews about my trillion-dollar hedge fund. > After competition dies out prices will skyrocket. I have yet to see a single scenario where this actually happened without being a product of government-granted monopoly (e.g. patents in pharma). But if Uber is going to charge me 3x for the same ride (just as taxis do now) I'll stop using them (just as I stopped using taxis). In the meantime, I've been saving money for a decade. I think it's a good deal.
- paulmd 6y ago
  Well, yes, typically subsidizing goods/services below the cost of production (or below the market-determined "fair value") is considered anticompetitive because it drives the fair competitors out of the market (as without the subsidies they can't compete) and then once achieve monopoly control of the market, the subsidies stop and the quality of service plummets and/or the price skyrockets. https://en.wikipedia.org/wiki/Dumping_(pricing_policy) https://en.wikipedia.org/wiki/Dumping_(pricing_policy)
  - smsm42 6y ago
    Except the prices didn't skyrocket and the quality of service didn't plummet for the last 10 years. I think if VCs are willing to give me 10 years of cheap quality rides, I'm in.
manigandham 6y ago
It would never be more expensive. And price is not the main factor (it already gets expensive quickly), the service and user experience is why people pick Uber.
- davidcbc 6y ago
  Then it should be no problem for Uber to up their fares so they can hire drivers as employees
  - manigandham 6y ago
    As stated, the service and user experience would change. That means less riders. That means even less drivers. It doesn’t work the same.

by aabhay 6y ago

smsm42 6y ago

> subsidized by VC money Wait, so I get a comfortable ride, I get it fast, I get it cheap, somebody else pays for the majority of it, that somebody else has tons of their own money, not coming from my taxes, which they spend willingly on giving me a good cheap ride - and somehow this is a bad thing?

LunaSea 6y ago
How long do you think that this will stay like this? After competition dies out prices will skyrocket.
- smsm42 6y ago
  > How long do you think that this will stay like this? If I knew how to answer questions like that, you'd see me on TV giving interviews about my trillion-dollar hedge fund. > After competition dies out prices will skyrocket. I have yet to see a single scenario where this actually happened without being a product of government-granted monopoly (e.g. patents in pharma). But if Uber is going to charge me 3x for the same ride (just as taxis do now) I'll stop using them (just as I stopped using taxis). In the meantime, I've been saving money for a decade. I think it's a good deal.
paulmd 6y ago
Well, yes, typically subsidizing goods/services below the cost of production (or below the market-determined "fair value") is considered anticompetitive because it drives the fair competitors out of the market (as without the subsidies they can't compete) and then once achieve monopoly control of the market, the subsidies stop and the quality of service plummets and/or the price skyrockets. https://en.wikipedia.org/wiki/Dumping_(pricing_policy) https://en.wikipedia.org/wiki/Dumping_(pricing_policy)
- smsm42 6y ago
  Except the prices didn't skyrocket and the quality of service didn't plummet for the last 10 years. I think if VCs are willing to give me 10 years of cheap quality rides, I'm in.

manigandham 6y ago

It would never be more expensive. And price is not the main factor (it already gets expensive quickly), the service and user experience is why people pick Uber.

davidcbc 6y ago
Then it should be no problem for Uber to up their fares so they can hire drivers as employees
- manigandham 6y ago
  As stated, the service and user experience would change. That means less riders. That means even less drivers. It doesn’t work the same.