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Of course there is, once the investor subsidies go away they won’t have to compete on price so much, and prices will go up. All of the services that rideshare
by AmericanChopper 3y ago
Of course there is, once the investor subsidies go away they won’t have to compete on price so much, and prices will go up.
All of the services that rideshare apps offer were highly demanded before the apps existed, and they were all delivered at more expensive prices with perfectly decent profit margins.
If VC money stops funding these products, then the prices have to go up to something similar to “traditional” prices for those services, but consumers will still choose to use the apps, because the service they provide will still be substantially better than the traditional service.
- freeone3000 3y agoTraditional services have gotten way better — in that, they got an app. Teo went from an obscure local taxi service to a great local taxi service, and now undercuts uber because they don’t have an insane advertising burn to subsidize.
- AmericanChopper 3y agoPart of the value prop of the big rideshare apps is that you can use them basically anywhere in the world (you probably need to have 3 or 4 of them to get most of the world covered). Nobody wants to land at the airport in Toronto, figure out what the local taxi app is, download it and get yourself onboarded, and then order a cab. People just want to step out of the airport and order an Uber.