Re:Uber CEO says its service will probably shut down tempora...
by AnthonyMouse on Wednesday August 12, 2020 @04:38PM
(#24136652)
So the hardest part is calculating the amount of the subsidy. Once you know that you just make it a deduction from the fare the customer pays and the government pays the difference.
Calculating the amount is finicky because the subsidy itself is going to affect the market pricing. But in the end, as long as there is a competitive market for both drivers and ride share companies, you know whether the subsidy is too high or too low because the subsidized cost of a ride there will be more or less than it is in other places (rather than exactly the same as you're trying to make it).
Because if the subsidy was too high then there would be "too many" drivers and the subsidized price would fall below what's required, and if the subsidy was too low then the opposite.
Calculating the amount is finicky because the subsidy itself is going to affect the market pricing. But in the end, as long as there is a competitive market for both drivers and ride share companies, you know whether the subsidy is too high or too low because the subsidized cost of a ride there will be more or less than it is in other places (rather than exactly the same as you're trying to make it).
Because if the subsidy was too high then there would be "too many" drivers and the subsidized price would fall below what's required, and if the subsidy was too low then the opposite.