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southerndrift | 6 years ago

Nothing is stopping you. But will you retain your market if you are not the biggest network? You need deep enough pockets to get 50% of the market or Uber will get its share back once you try to be profitable since they can leverage their scale.

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vkou|6 years ago

As an airline passenger, do I care whether or not Alaska, or American has the biggest network?

I want to get from point A to point B, as cheaply as possible. If the Alaska flight is the cheapest, I'll take it. If the American flight is the cheapest, I'll take that.

I have no brand loyalty for airlines. I have no brand loyalty for taxi companies. Why should I have brand loyalty for taxi-in-an app?

How can Uber leverage their scale? Are you saying they are going to price-dump to push me out of a regional market? Isn't that illegal, and something that our esteemed President complains about on a regular basis?

I'm not sure 'Become so big, and engage in blatantly anti-consumer monopoly behaviour to the point that you are practically begging to be put on an anti-trust trial' is a great moat to have.

southerndrift|6 years ago

The airline argument is quite convincing.

How about the frequency and the fair price? It's worthwhile to compare airline rates. It's more difficult for in-app uber purchases that are more frequent for less money. Will people compare rates? Especially if rates are not cheaper elsewhere? The biggest network will have the best cost structure.

Uber can keep other companies alive by slightly rising their prices. So no monopoly problem but nobody who has the money to innovate. Then they have the money for the most advanced technology and by adjusting their prices they decide how big their market share is.