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Can you really not think of reasons why they'd want to maximize revenue? Here are a few thoughts, off the top of my head: * room to drop prices at the right mo
by jobposter1234 12y ago
Can you really not think of reasons why they'd want to maximize revenue? Here are a few thoughts, off the top of my head:
* room to drop prices at the right moment, when it would most affect competitors
* more money in the bank means less pressure to raise money (before today; I'd guess this is the last big round they do). Less pressure means they can wait until they get a better deal for current stakeholders
* they don't think price is the determining factor for market share. I'm seeing Uber and Lyft mutually differentiate corporate personality to avoid being commoditized for each other
* people tend to judge safety / quality by price -- if they were 50% cheaper, people might be sketched out
* maximizing revenue also maximizes money in their driver's pockets -- they need high quality, reliable drivers, and thus need to pay them decent wages.
Those are just a few reasons why they would maximize revenue pre-VC money.