Almost 7 years ago to the day, I wrote a blog post called "How to build an enduring, multi-billion dollar business: create a 10x product + recast incumbent cost structures".
But 10 years later, an Uber//lyft ride is more expensive than a conventional yellow taxi? Where does the short term deflation caused by over investment fit in long term business sustainability?
It's always about being cheaper than the substitute. At least in SF, the conventional taxi has disappeared. Can't say for other cities but that then enables the price to go up. Uber makes money on each ride - hence their gross profit!
But 10 years later, an Uber//lyft ride is more expensive than a conventional yellow taxi? Where does the short term deflation caused by over investment fit in long term business sustainability?
It's always about being cheaper than the substitute. At least in SF, the conventional taxi has disappeared. Can't say for other cities but that then enables the price to go up. Uber makes money on each ride - hence their gross profit!