3 ms·
In general I agree with what you're saying. I also use Uber and enjoy Uber a great deal. But I think it's important to understand that a) There's a very good ch
by jusben1369 11y ago
In general I agree with what you're saying. I also use Uber and enjoy Uber a great deal. But I think it's important to understand that a) There's a very good chance that your fare is subsidized by venture capital and does not reflect a "true" fare and that b) this subsidization, like any subsidization, will drive non subsidized competitors from your marketplace which can result in c) Uber deciding to no longer subsidize the true cost of a fare and you having a marketplace with far less competition.
- navait 11y agoI'm under the impression that this violates US anti-trust laws - is this not the case?
- icebraining 11y agoIt's called "predatory pricing," but I think you must usually prove that the intent is specifically to eliminate your competition - simply selling below cost isn't illegal, AFAIK (IANAL). https://en.wikipedia.org/wiki/Predatory_pricing https://en.wikipedia.org/wiki/Predatory_pricing
- fixermark 11y agoEspecially if your process is legitimately more efficient.
- npalli 11y agoUber takes 20% cut on the fares and taxi drivers are happy to take the deal. By what process do you think venture capital is subsidizing the fare?
- boothead 11y agoYou're right - all of these things are of concern. The incumbents never really seem to make an argument beyond shrieking that their protected racket is being disrupted though. I remember one hilarious picture on the news of a cabbie f-ing and blinding to a reporter out of his window at a protest against uber. Just behind him in his cab was a sign saying "cash only". When an innovation comes along and starts stealing your lunch, screaming that you were here first isn't really going to help you much!