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The standard undisruption pattern: 1. Startup undercuts incumbents with cheap new approach. 2. Turns out the new approach was cheap because it saved money by

by jl6 4y ago

The standard undisruption pattern: 1. Startup undercuts incumbents with cheap new approach. 2. Turns out the new approach was cheap because it saved money by pushing risk onto the customer or 3rd parties. 3. Turns out the extra cost of the incumbents wasn’t all profiteering. 4. Regulations and/or bad press step in, and make the startup put in some extra controls/protections/standards. 5. Startup not looking so cheap any more. 6. Startup graduates to being just another incumbent.

spookthesunset 4y ago
Sounds like Uber...
- Ancalagon 4y ago
  And the uber drivers and car quality are about the same as taxis nowadays too
  - deleted 4y ago
    [deleted]
- propogandist 4y ago
  which still hasn't made a profit, but VCs have dumped the POS business onto retail investors
jollybean 4y ago
All of that - except regulations are excessive particularly zoning and what are effectively artificial market controls. Both Taxi and Hotel industries are insider, regulatory capture monopoly frauds that need to be busted wide open. Most frustratingly, our stupid governments have not effectively adapted. There has been almost 0 rational policy adjustment since this change. Even more weird, even in cities where Uber was banned (don't agree with that, but it's the cities choice) - they just continued to operate, the effete city managers unable to do anything about it. We should have been experimenting with different lodging models for some time now. Utterly stupid cities could be making considerably more money with better taxi models, instead, they stay stupid, while Uber collects surpluses that could go into our civic infrastructure. It's a shame.
voidr 4y ago
That's not entirely true here. Short term rental apartments can be a lot cheaper than a hotel because if you are doing it right, you can provide the same service with less staff. Hotels can become cheaper by removing some of the services that cost more than they are worth. It is also worth noting that larger groups might prefer an apartment where they can all stay over multiple hotel rooms. There are also larger families and people who want to cook.

by jl6 4y ago

spookthesunset 4y ago

Sounds like Uber...

Ancalagon 4y ago
And the uber drivers and car quality are about the same as taxis nowadays too
- deleted 4y ago
  [deleted]
propogandist 4y ago
which still hasn't made a profit, but VCs have dumped the POS business onto retail investors

jollybean 4y ago

All of that - except regulations are excessive particularly zoning and what are effectively artificial market controls. Both Taxi and Hotel industries are insider, regulatory capture monopoly frauds that need to be busted wide open. Most frustratingly, our stupid governments have not effectively adapted. There has been almost 0 rational policy adjustment since this change. Even more weird, even in cities where Uber was banned (don't agree with that, but it's the cities choice) - they just continued to operate, the effete city managers unable to do anything about it. We should have been experimenting with different lodging models for some time now. Utterly stupid cities could be making considerably more money with better taxi models, instead, they stay stupid, while Uber collects surpluses that could go into our civic infrastructure. It's a shame.

voidr 4y ago

That's not entirely true here. Short term rental apartments can be a lot cheaper than a hotel because if you are doing it right, you can provide the same service with less staff. Hotels can become cheaper by removing some of the services that cost more than they are worth. It is also worth noting that larger groups might prefer an apartment where they can all stay over multiple hotel rooms. There are also larger families and people who want to cook.