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To: unlearner
Dumb question:

What keeps a new company like Goober from starting up tomorrow and offering the exact same services as Uber for a much lower price?

43 posted on 03/20/2017 3:17:37 AM PDT by Alberta's Child (President Donald J. Trump ... Making America Great Again, 140 Characters at a Time)
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To: Alberta's Child

“What keeps a new company like Goober from starting up tomorrow and offering the exact same services as Uber for a much lower price?”

Nothing. If you have the means to create the smart app, market it, and comply with various regulations, you can do it.

There is an innate advantage to being first to market though. Makes it difficult for competitors that come late to the game. But first in does not guarantee a win. Look at Yahoo and Google in the search engine wars. But also look at Bing. Once Google established itself as the defacto leader, even Microsoft could not cut much into its market share.

Uber now has a huge advantage with brand recognition, maps, logistics, a massive existing customer and contractor database, and lots of market research. They have tried many experiments, and know what works and what does not. They are way ahead of the competition.

On the flip side, big companies like Google, Tesla, or even car manufacturers may jump into the fray once self-driving cars become a thing. The cost of the driver is the number one expense for ride sharing. Self-driving cars will be more disruptive than ride sharing ever was.

The days of making money as a driver for Uber are numbered.


44 posted on 03/20/2017 4:51:46 AM PDT by unlearner (So much winning !!! It's Trumptastic!)
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