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by fred_durst
4335 days ago
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Can you try at least for one or two comments to dial down the snark. Seriously, I don't live in the Bay Area anymore so my tolerance for it is pretty low these days. Anyhow, it's not a threshold business. The idea that there will eventually be a "number of drivers" that is too high is without any case study of modern business I can recall. Maybe you can enlighten me on some examples(see I can do that passive aggressive snark too!). I can't remember a single instance of over supply that destroyed the market maker's position. Sure many in the supply side(drivers in this case) lose their shirts, but the market makers typically do very well. The network is drivers and riders. Just like a dating site as a matchmaker. We all know that is lead by female adoption. Same analogue of driver adoption. Once you have enough network on the supply side you end up with a dominant share of the demand side which comes back around and gives you leverage over the supply pricing. That's where the profit happens. Maybe you should dial down both the snark and idealism and read up on the historical business fundamentals at play. For example, explain to me the several periods where eBay increased its margins to the determent of sellers and did not lose its dominant market position. Or 1 degree of separation, explain how PayPal continues to dominate. |
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