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by marinman
2751 days ago
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"Presumably all of those costs would disappear once someone wins the market or a "truce" is called." I'm not sure any single company ever truly wins this market because, as others have mentioned, the barriers to entry are pretty low. Raise VC money to subsidize the most lucrative rides/markets and Lyft & Uber will never be able to stop their spending (either through advertising or through acquiring new entrants). The ride-share market may wind up like the airlines: heavy utilization but not amazing businesses. |
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I think that's more or less what I was trying to get at. Once you build your place in the market, competition can and will come along, but you'll be so entrenched, just like the airlines, you can just cruise along (no pun intended) with very little spent on ads or customer acquisition.