tag:blogger.com,1999:blog-1752771132348583018.post4986440270164161442..comments2024-03-29T00:50:36.331-05:00Comments on Managerial Econ: REPOST: Über succeeds where taxis failLuke Froebhttp://www.blogger.com/profile/06832270922187297624noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-1752771132348583018.post-84893992694488586292015-01-25T15:55:47.918-06:002015-01-25T15:55:47.918-06:00Your post about Uber is a perfect example of compe...Your post about Uber is a perfect example of competitive positioning within an industry. In this case, there was a demand for reliable transportation that wasn’t being met by the current options in the industry. Taxis weren’t providing desired services for all of the reasons outlined in your post. Public transportation was subject to scheduled departure and arrival times, and only traveled to and from specific destinations. Driving isn’t always a feasible option. Therefore, there was a need for reasonably priced, flexible transportation that could be provided simultaneously for many people. Uber was able to meet this demand and occupy this niche market. Not only was Uber able to supply the desired transportation, but they’ve been able to be profitable doing it. A.C.https://www.blogger.com/profile/10559881523018902323noreply@blogger.comtag:blogger.com,1999:blog-1752771132348583018.post-22096801358221499672014-10-25T17:38:00.981-05:002014-10-25T17:38:00.981-05:00Über is yet another idea which was not built for t...Über is yet another idea which was not built for the U.S. system of business. Our system of regulated inefficiencies has built-in protection systems which are led by lobbyists and unions. Our issue has never been than no single person figures out a better and or cheaper way to accomplish common tasks. The more efficient methods seem to involve cutting out the middle-men. <br />In my recent text reading on pricing, we have always worked from demand and competitive angles. Working from a cost angle ensures that we are not taking losses to build a customer base. Another important strength is that the demand base is stronger and more loyal. This inelasticity of demand allows Über customer to rely on a pricing system that is best for their customers.<br />Über will seem God-sent in the short-run. Perception will definitely start changing when legislation has fully taken over. The middle-men will use this opportunity to ensure that insurance, signage and taxes are adjusted for the ‘class’ under which Über operators make their runs. <br />Anonymoushttps://www.blogger.com/profile/15919718531808442118noreply@blogger.com