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>> There are a number of competing apps for rides (or they would be built quickly to compete) and cars could freely undercut Uber. That's one possiblity. Anot
by jtbigwoo 13y ago
>> There are a number of competing apps for rides (or they would be built quickly to compete) and cars could freely undercut Uber.
That's one possiblity. Another is that network effects would allow Uber (or Lyft or whatever) to dominate local markets since drivers and riders would flock to the most popular. The barrier or new entrants is going to get pretty high if Uber can snap up enough drivers.
- sailfast 13y agoTrue, but there is no shortage of drivers even if they start snapping them up. For $20 a mile, I'll get in my car and pick you up. Uber would have to corner the market for all drivers by paying them off which is... expensive, and extremely unstable. If you required a CDL or other more involved permit to pick people up that might restrict supply but I don't anticipate demand outpacing supply of drivers if there is money to be made.