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Wouldn't that effectively be asking Lyft to jump on a grenade for the greater good? Drastically undercutting the competition means you leave money on the table
by flagrant_taco 3y ago
Wouldn't that effectively be asking Lyft to jump on a grenade for the greater good?
Drastically undercutting the competition means you leave money on the table. Let's just assume a 5% discount isn't enough to win riders but 15% is, should the cut fares but anything over 15% just to screw Uber? And does this risk setting a low enough market cap on Lyft that they could be compelled to take an acquisition offer simply because they so drastically under cut their potential revenue?
Startups' job isn't to fix a broken market, it's to either become self sufficientquickly or to 10x investor capital depending on the funding model. The only business model that can really justify cutting fares drastically would be a non-profit, maybe some kind of collective run by the drivers themselves.
- kedean 3y ago> Startups' job isn't to fix a broken market An aside...why are we still referring to Uber and Lyft as startups? They are 14 and 11 year old, extremely well established, multinational companies. They are no longer the little guys disrupting an entrenched market. When do they stop getting the excuse of being startups?
- flagrant_taco 3y agoTotally fair, I tossed startup in there pretty loosely as I was thinking about their goals when they originally opened. I definitely don't consider them startups today.
- wordpad25 3y agoBig Insurance/Banking companies is around a hundred years old. Uber is still a new business trying to prove it works.