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by darpa_escapee
3460 days ago
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In my market, Uber undercuts the established taxi businesses. People clearly have a higher valuation for a taxi ride than what Uber is charging because they've been paying the higher price and are still paying it when they choose another business other than Uber to ride with. Once Uber has driven out the other options, thus the need for competitive pricing, why wouldn't they capture that lost value? |
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This is the fair, free market price. That's how normal competition works.
If they were significantly not profitable, then you can use the price dumping argument.
But since they ARE profitable, then this is the price that the free market will go towards.