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A comment on Uber proposes policy that would pay drivers a minimum wage of $21 per hour. Parent comment

Re:Uber proposes policy that would pay drivers a minimum wag... by novok on Thursday August 29, 2019 @01:27PM (#20831664)
I’ve read somewhere ride share companies make more total revenue when prices are cheaper, and people use it less when its more expensive. Since these companies make more money with more total revenue, i’m guessing its in their interest to make it cheap.

It makes sense, if something is cheaper, you use more of it. If its more expensive, you start using substitutes, as the benefits of rideshare gets dwarfed by its extra cost. It’s literal econ 101

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Re:Uber proposes policy that would pay drivers a minimum wag... by ghaff on Thursday August 29, 2019 @01:38PM (#20831797)
It depends on what the price elasticity of demand is. At least in the simple case, there is some price point at which revenue is maximized. Higher prices drive demand down faster than they drive revenue up. Lower prices drive revenue down faster than greater demand drives them up.
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