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So long as it's legal to operate in this way, if Uber + Lyft do combine and raise rates, what's to stop a new company from coming in and undercutting them on pr
by seanp2k2 12y ago
So long as it's legal to operate in this way, if Uber + Lyft do combine and raise rates, what's to stop a new company from coming in and undercutting them on price? I think that, barring any laws preventing companies from using this business model, we're now in a race to the bottom on price, which seems to be what the medallion system was all about preventing.
- wcummings 12y agoUber and Lyft are just market makers, they only have so much power to "set" the price.
- quadrangle 12y agoTrue. Now the question is how much is "so much"? Answer: if you have a near-monopoly as the middle-man between people in a market, you have almost all the power. In this case, "so much" is "SOOOO much".