Don't be evil? Google's mobile services in Africa.

Posted by kakooljay on Tuesday October 13, 2009 @12:19PM
from the self-post dept.

A recent article in The Economist discusses several mobile services in Africa, including Google Trader, "a text-based system that matches buyers and sellers of agricultural produce and commodities [in Uganda]. Sellers send a message to say where they are and what they have to offer, which will be available to potential buyers within 30km for seven days... These services cost 110 shillings ($0.05) a time, the same as a standard text message, except for Google Trader, which costs double that. In their first five weeks the services received a total of more than 1m queries." [http://www.economist.com/specialreports/displaystory.cfm?story_id=14483848]

So it sounds like Google charges twice as much as its competitors.. just wondering why...

( 4 comments | on HN )

Re:Don't be evil? Google's mobile services in Africa. by melling on Tuesday October 13, 2009 @12:46PM (#879455)

Google's service must be better, right? Otherwise, people would just pay half the price. What exactly is wrong with charging a fair price in a competitive market. They might even be able to take some of those extra nickels, hire more people and build even more services.

[ Parent | on HN ]

Re:Don't be evil? Google's mobile services in Africa. by kakooljay on Tuesday October 13, 2009 @03:55PM (#879939)

I believe in free markets too (I'm an economist + engineer). But Google, which professes to "not be evil" & is making peanuts on these services, could have set a great example (and not risked damaging publicity)..

[ Parent | on HN ]

Re:Don't be evil? Google's mobile services in Africa. by byoung2 on Tuesday October 13, 2009 @12:24PM (#879404)

If the service is superior to their competitors' offerings, there is nothing wrong with charging a premium. Actually, when you think of it, charging a lower price might be more evil if it undercuts the competition and puts them out of business (a la Walmart).

[ Parent | on HN ]

Re:Don't be evil? Google's mobile services in Africa. by fmendez on Tuesday October 13, 2009 @12:35PM (#879432)

I would have agreed with your argument about not lowering the price if your offering is superior, but aren't we talking about a very poor country? doesn't Google have enough $$ to make a concession? (I'm not talking about giving the service for free just low enough to match competition).

[ Parent | on HN ]