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by kumarvvr 2180 days ago
> fewer companies mean less competition, more efficiency and better economics

Can you explain this sentence? I always thought more companies, implies more innovation, and thus more efficiency.

1 comments

Imagine a market where there is one food delivery company rather than ten:

a) at a restaurant, rather than having ten different delivery people pickup, One person can pickup ten orders.

b) 10x more consumers means that the average distance between deliveries shortens.

It’s not going to be quite this efficient but directionally more scale means more efficiency.

In addition, less competition means that Uber can charge more for their services.