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by torginus
626 days ago
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If someone would be able to solve TSP and surge pricing better than Uber, do you think they'd be able to dethrone them? The reason surge pricing exists and works the way it is isn't some capitalist efficiency mechanism - in fact it's quite the opposite - it's algorithmic price fixing enabled by Uber's quasi-monopoly, and it is the very thing that enables Uber to exist in the first place as a very profitable company. A scenario in which competition exists would drive the margins of drive sharing apps to the ground, making it a highly unprofitable exercise. I suspect investors knew this and secretly colluded to promote Uber to become a monopoly. It has very little to do with technology. |
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If this was true, they'd have the surge pricing set for always.