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Everyone is assuming customers are price sensitive, it could be that the losses are designed to achieve monopolies and drive out competition while establishing a large two sided network and once achieved they use monopoly pricing power to extract value from price insensitive customers. It’s a reasonable thesis based on history.

I just personally thing this class of company will never achieve positive unit economics because people are price sensitive, and the service is a commodity with no meaningful network effect



I’m pretty sure price sensitivity is already well studied and proven in this case given all of the surge pricing they already experiment with


I agree, that's why, despite understanding the investment thesis, as I point out in my last sentence, I am skeptical.




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