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by alex_young
2934 days ago
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This sounds exactly like the ridesharing model. Drown the market in money, kill off your competitors by undercutting on price, then jack up prices to make a business. The problem, like ridesharing, is once you start raising prices, you just lost all of your customers to a new competitor that hasn't spent all of their money. I don't see how this model can possibly work. The barrier to switching is almost 0 to the user - you can already see that by looking at the Uber & Lyft tags on every car you get in. Installing another app isn't as hard as swapping insurance providers or mobile platforms. |
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Of course this hasn't happened in the rideshare market yet - it's cheaper than ever before. I've found Uber Express prices to be almost unbelievably cheap recently.
Seems like there's at least some non-zero chance that these prices remain low until autonomous vehicles make them permanent and sustainable.