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Why Your Next Package Will Be Delivered By An Uber | FedEx!!!UPS!!!

Discussion in 'Uber Drivers Forum' started by Dreamer, Jun 28, 2015.

Uber Driver Promo Code | Lyft Driver Promo Code

  1. Dreamer

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    Staff Member

    Jan 19, 2015
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    Geographic saturation is the key to network effects and profitability in the ridesharing business.

    The more drivers Uber or Lyft have in a given region, the faster the pick-up times, the better the customer experience and the more rider demand — which in turn allows drivers to earn more money and attracts more drivers to the network.

    But do Uber’s network effects really scale infinitely, or will they reach a point of decreasing marginal returns? Could Lyft achieve parity in pickup wait times and driver downtime with only a fraction of Uber’s scale?

    Let’s imagine that Uber achieves a geographic saturation advantage of 10 or even 100 times more drivers in a given area than Lyft (realistically this is unlikely, given the ease with which drivers can work for both services simultaneously). But even if Lyft did concede such an enormous advantage, one could envision the ridesharing market expanding to the point where they get a driver to pick you up within three minutes every time.

    What’s the difference between getting picked up in one minute and three minutes? Not much.

    Does FedEx and UPS have to start worrying now?

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