Re:Seattle becomes first in U.S. to protect gig workers from...
by eru on Thursday August 10, 2023 @10:28AM
(#37076595)
Well, the original notion was silly:
> It's a failed business model because Uber has to provide a return to investors and livery is basically a race to the bottom without some form of price controls.
You can't have a race to the bottom without competitors still in the market.
If competitors like Uber leave the market, Lyft can raise prices.
In the long run, there will be a balance between competitors entering and exiting the market just around the point where the industry is barely viable as a business.
That's also how eg restaurants or cafes work in many big cities; and this explains why so most cafes fail, but why there are also always some cafes around.
> It's a failed business model because Uber has to provide a return to investors and livery is basically a race to the bottom without some form of price controls.
You can't have a race to the bottom without competitors still in the market.
If competitors like Uber leave the market, Lyft can raise prices.
In the long run, there will be a balance between competitors entering and exiting the market just around the point where the industry is barely viable as a business.
That's also how eg restaurants or cafes work in many big cities; and this explains why so most cafes fail, but why there are also always some cafes around.