Re:The startup economy is fundamentally broken and the virus...
by wickerman on Wednesday May 20, 2020 @08:51AM
(#23246258)
I think this also happens because traditionally, people become loyal to a brand because they gain something intangible from it. Reducing prices is not a way to ensure loyalty - as soon as they find a better deal customers will bail, as you exemplified. What does Uber do so well that you'd prefer it over a cheaper Lyft? Nothing. There may be virtually no difference in quality of service (sorry I have never used Uber or Lyft).
I remember when I was in college doing an enterpreneurship class we were constantly added what was the value to our products - what does your product do so well that people would flock to you instead of the competition? Being cheaper was not an answer my professors allowed.
Re:The startup economy is fundamentally broken and the virus...
by newsclues on Wednesday May 20, 2020 @08:05AM
(#23245853)
Lack of loyalty means the end game is monopoly.
I dropped Uber for a month in the Toronto Area as Lyft gave me a pile of coupons. Then I dropped Lyft when those coupons ran out and Uber was giving me discounts to come back.
Whenever I visit a major US city like New York, I check if there is an alternative provider like Via. They also have coupons. I went from NYU to Laguardia for $15 + tip last time I was there. The Uber trip without coupons would have been 60.
The lack of customer loyalty means that you have to win the customer every ride or they go somewhere else.