Re:Ride-hailing apps may help to curb drunk driving
by smsm42 on Thursday April 06, 2017 @01:28AM
(#14048170)
When new cheaper thing comes to the market, I have heard a lot of sayings along the lines you're saying - they only doing it for now and after they have established themselves they'll jack up the prices. I can't remember any case when it actually happened. I don't mean things like "introductory pricing" when you get short time cheap and then the price rises - you know the deal upfront there. I mean some service company - not protected by some monopoly enforcement from state - jacking up the prices after they decided they have enough market share. Has it happened?
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Re:Ride-hailing apps may help to curb drunk driving
by pm90 on Thursday April 06, 2017 @07:49AM
(#14049703)
It won't be an explicit money grab. Once they have pushed out other competitors, they will IPO. Then, they will come under pressure from Wall Street to turn a profit (eventually...unless they do a la Amazon and keep creating/expanding into new markets). Then all Uber customers/drivers will see an email like: Dear Customers, Thanks for being a great part of our "community". Due to rising costs/regulations/some_generic_reason, we have to regretfully increase prices by $X.
Re:Ride-hailing apps may help to curb drunk driving
by smsm42 on Friday April 07, 2017 @01:28PM
(#14061671)
That's what I am asking - the only companies I see such scenario playing out are in deeply monopolized and regulated industries (healthcare, ISPs, cable TV providers). I'm not saying Uber won't ever raise the prices ever, but I am yet to see a plan like this - capture the market, then drive up prices - actually happen and be sustainable. Amazon is surely not an example of it, even though it did capture the market, no sign of dramatic price increase.
Re:Ride-hailing apps may help to curb drunk driving
by johncolanduoni on Thursday April 06, 2017 @01:34AM
(#14048203)
It's one thing to increase your profit margin after becoming established, it's another thing if you aren't able to even have a profit margin at current pricing.