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Your argument about “predatory” versus “unsustainable” pricing is a distinction without a difference. All predatory pricing is unsustainable. You’re literally s
by jonathankoren 3y ago
Your argument about “predatory” versus “unsustainable” pricing is a distinction without a difference. All predatory pricing is unsustainable. You’re literally selling at a substantial loss to take customers away from your competitors and drive them out of business. It is an unsustainable price. That’s the whole point.
Usually, you don’t do that in every market simultaneously, and are actually turning a profit overall, thus. Or taking yourself down along with the competition.
Uber and Lyft got away with it so long because VCs believed in growth above all else, and that at sometime in the unspecified future, the ride share companies would transition to a sustainable business model after they established a near monopoly.
- taeric 3y agoPredatory is selling at below cost of manufacture. You do it in a way that is unsustainable with regard to making and offering of the product. Much of tech's unsustainable pricing is that they cannot maintain the growth of the company at that pricing forever. Which, tracks, as they also cannot sustain that growth forever.