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It's introducing people to the service and acquiring market. Better prices come later.



But will people continue to use Uber when the price goes up to market levels. Anecdotally, when Uber entered the market where I live they offered steep discounts and everybody I knew started to use them. Today they cost basically the same as most taxis and I don't know anybody who still primarily uses Uber.


Sounds like Groupon all over again.


>It's introducing people to the service and acquiring market. Better prices come later.

You say this as if 75% of the reason people take Uber isn't price, and that one day Uber will simply be able to jack up all their prices and make money. Demand doesn't work that way.


Demand does work that way.

Why does a drug dealer give free samples at first? ... Creating demand.

What they will not have for long though is a monopoly on supply in India.




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