4 ms·

I wouldn't compare cabs to airlines. 10% price difference between one airline to the other can be 100 to 200 dollars in a single buy , where in cabs it could be

I wouldn't compare cabs to airlines. 10% price difference between one airline to the other can be 100 to 200 dollars in a single buy , where in cabs it could be spread out in an entire year. I agree that airline competition has been so price focused that value to consumer has been eroded, but cabs are fundamentally a simple, less pricey , decision. I hope they become commodities regulated for safe driving and rather modern cars (no older than x years). The rest really IS icing on the cake.

bsbechtel 12y ago
I would argue airline competition focus on pricing is due to the marketing/purchasing methods presented to consumers when they go to buy a ticket. Expedia, Orbitz, Priceline, etc all show a big graph listing the prices of all flights taking place on the dates you want to travel. If you list a comparison of any product to consumers with little information about the varying products other than price, most consumers are going to make their purchasing decision based on price alone. Having said that, I'm not at all arguing that price isn't important in the airline industry. $200 is a big chunk of change for an airline ticket. However, consumers might be a little more flexible about price if they had a better idea of what other value they are getting on the trip.