3 ms·
> rideshare pricing for both demand and supply sides is an incredibly sophisticated statistics and economics problem, where appropriate modeling can have long t
by haltingproblem 4y ago
> rideshare pricing for both demand and supply sides is an incredibly sophisticated statistics and economics problem, where appropriate modeling can have long term revenue impact.
This is the fallacy of completeness and sounds vaguely like Wassily Leontief's input-output planning and has been proven to not work [1]. In the absence of complete information - demand and supply, "appropriate modeling" will always fall short. Economics has again and again showed that sophisticated models always fail and simple heuristics based models work far better. I suspect a simple rules driven system would work just as well.
Uber big innovation IMHO was making supply extremely flexible by massively lowering cost to become a driver and making it possible to be a marginal driver. As a society, we should run with that innovation. The rest of stuff, the fancy app, the car tracking, the dynamic pricing is fluff hiding the real value add.