3 ms·

I can't escape the feeling that it boils down to the old classic 3 stage business model: 1. collect underpants 2. ? 3. Profit Uber and Lyft are great exampl

I can't escape the feeling that it boils down to the old classic 3 stage business model: 1. collect underpants 2. ? 3. Profit Uber and Lyft are great examples. They haven't established long-term stickiness with drivers or passengers. So if either of those groups get offered a better deal they will switch. Therefore it's just a relentless race to the bottom with no sustainable business in sight.

satvikpendem 3y ago
Exactly. Well, I'm not complaining at my VC funded rides though, it's a great transfer of wealth from the rich to the poor, ie me, lol.
- version_five 3y ago
  There's an interesting article somewhere about a pizza place that iirc arbitraged VC subsidies by ordering pizza from itself through some delivery app that was buying the revenue by selling the pizza below the actual price. Edit: https://www.readmargins.com/p/doordash-and-pizza-arbitrage https://www.readmargins.com/p/doordash-and-pizza-arbitrage
  - satvikpendem 3y ago
    This was satirized in Silicon Valley too, funnily enough: https://www.youtube.com/watch?v=LYu-d6y5HRo https://www.youtube.com/watch?v=LYu-d6y5HRo https://www.youtube.com/watch?v=rdJifVNEKnE https://www.youtube.com/watch?v=rdJifVNEKnE
- mustacheemperor 3y ago
  I wonder what the relative scale of that wealth transfer is compared to the transfer of wealth involved with leveraging the motor vehicle equity of drivers into profits for wealthy investors. Edit: per reply, “income” would be a better word
  - satvikpendem 3y ago
    It's not profits though. Investors are paying more than the value of the ride to the driver. Now whether that offsets the depreciation of the vehicle over time, I don't know the numbers on that.
ClumsyPilot 3y ago
> just a relentless race to the bottom with no sustainable business in sight. Isnt it ironic that the main thing they teach to the general public is benefits of competition in free markets. But the first thing they teahc to MBA types is to avoid competition by any means possible.
- lotsofpulp 3y ago
  Not ironic because buyers and sellers have opposing interests.

satvikpendem 3y ago

Exactly. Well, I'm not complaining at my VC funded rides though, it's a great transfer of wealth from the rich to the poor, ie me, lol.

version_five 3y ago
There's an interesting article somewhere about a pizza place that iirc arbitraged VC subsidies by ordering pizza from itself through some delivery app that was buying the revenue by selling the pizza below the actual price. Edit: https://www.readmargins.com/p/doordash-and-pizza-arbitrage https://www.readmargins.com/p/doordash-and-pizza-arbitrage
- satvikpendem 3y ago
  This was satirized in Silicon Valley too, funnily enough: https://www.youtube.com/watch?v=LYu-d6y5HRo https://www.youtube.com/watch?v=LYu-d6y5HRo https://www.youtube.com/watch?v=rdJifVNEKnE https://www.youtube.com/watch?v=rdJifVNEKnE
mustacheemperor 3y ago
I wonder what the relative scale of that wealth transfer is compared to the transfer of wealth involved with leveraging the motor vehicle equity of drivers into profits for wealthy investors. Edit: per reply, “income” would be a better word
- satvikpendem 3y ago
  It's not profits though. Investors are paying more than the value of the ride to the driver. Now whether that offsets the depreciation of the vehicle over time, I don't know the numbers on that.

ClumsyPilot 3y ago

> just a relentless race to the bottom with no sustainable business in sight. Isnt it ironic that the main thing they teach to the general public is benefits of competition in free markets. But the first thing they teahc to MBA types is to avoid competition by any means possible.

lotsofpulp 3y ago
Not ironic because buyers and sellers have opposing interests.