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A valid point, but shouldn't this competition on price (i.e. race to bottom) also apply at the level of Uber and its competitors?
by MaxBarraclough 6y ago
A valid point, but shouldn't this competition on price (i.e. race to bottom) also apply at the level of Uber and its competitors?
- chrisseaton 6y agoA large company like Uber is going to be relatively stable in terms of cash-flow, access to credit, etc day-to-day. If they do sell under cost it's usually part of a longer-term plan. An individual driver may have a loan-shark threatening to break their fingers for a repayment that day. I think individuals are going to be much more volatile and so create a worse race to the bottom. Maybe let drivers set a price above a floor? Could be like their own surge pricing.