Re:Uber Turns to Saudi Arabia for $3.5B Cash Infusion
by encoderer on Thursday June 02, 2016 @04:51AM
(#11821153)
No it's called priming a two sided market. Do you think supply and demand grow in harmonious lockstep?
[ Parent
| on HN ]
Re:Uber Turns to Saudi Arabia for $3.5B Cash Infusion
by chillydawg on Thursday June 02, 2016 @05:11AM
(#11821211)
They do if you don't mind waiting 30 years, but the Valley wants billions tomorrow.
Re:Uber Turns to Saudi Arabia for $3.5B Cash Infusion
by codecamper on Thursday June 02, 2016 @09:43AM
(#11822369)
I doubt it would take 30 years. More like 3-5. But when your competitor has the cash infusion, you better have it too.
Re:Uber Turns to Saudi Arabia for $3.5B Cash Infusion
by haney on Thursday June 02, 2016 @11:42AM
(#11823394)
In addition to this you have the problem of dissatisfied customers using the app for the first time and then never coming back.
They have to ensure supply while they bring on new customers (has associated acquisition cost) if they acquire a customer and that customer isn't able to purchase anything from them due to lack of supply (or in the case of uber the price is too high because of surge kicking in) then that customer will churn forever, and potentially share their negative experience with their friends.
So basically, nail supply, grow customers, don't run out of cash before the whole thing is working.