Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Lyft Files for IPO

reuters.com

Post reply on HN
Print view View original

301–310 of 319 posts

Re: Lyft Files for IPO

#301

Post by baddox »

joshuaali wrote: post #300
baddox wrote: post #274

Earlier quoted context omitted.

Sounds like you’re talking about the price elasticity of demand. You describe airline travel (at least for personal economy class flights) to be fairly inelastic, meaning that if the price rises even a little bit, a lot of people will just drive or not take the trip. That certainly rings true to me. I recently bought US domestic flights home for Christmas, and I certainly chose the absolute cheapest flight that fit t…

It's actually the other way around: demand is said to be inelastic if changes in price have little impact on it.

Ugggh, yes, no matter how much I read about this stuff I will always get that backwards. I think I always mix it up because I think of the price tolerance being elastic instead of the demand being elastic.

Re: Lyft Files for IPO

#302

Post by pbreit »

rorykoehler wrote: post #269
pbreit wrote: post #263

Earlier quoted context omitted.

When you say you think it's a commodity business could you imagine a new entrant in a mature Lyft/Uber market? I couldn't. Pockets would have to be very deep. The basic economics of Uber/Lyft-style transportation is very profitable. The biggest economic challenges are 1) entering a market and 2) pools. And Lyft & Uber fighting each other.

Setting up an airline isn't cheap either but plenty of people do it.

Setting up an airline is easier. You can lease a plane or two and fly one cherry-picked route. There’s no chicken/egg hurdle.

Re: Lyft Files for IPO

#303

Post by pbreit »

baddox wrote: post #275
pbreit wrote: post #263

Earlier quoted context omitted.

When you say you think it's a commodity business could you imagine a new entrant in a mature Lyft/Uber market? I couldn't. Pockets would have to be very deep. The basic economics of Uber/Lyft-style transportation is very profitable. The biggest economic challenges are 1) entering a market and 2) pools. And Lyft & Uber fighting each other.

I can imagine it. I’ve lived in San Francisco since 2011, and I remember using Uber, Lyft, and Sidecar. I have had long periods where I was “loyal” to each of those three, with Lyft being the current and longest-lived loyalty. At various times in the past I would comparison shop between all three, looking for the cheapest or quickest option.

So you’ve witnessed zero new successful entrants in 7 years despite a huge market.

Re: Lyft Files for IPO

#304

Post by pbreit »

IshKebab wrote: post #276
pbreit wrote: post #263

Earlier quoted context omitted.

When you say you think it's a commodity business could you imagine a new entrant in a mature Lyft/Uber market? I couldn't. Pockets would have to be very deep. The basic economics of Uber/Lyft-style transportation is very profitable. The biggest economic challenges are 1) entering a market and 2) pools. And Lyft & Uber fighting each other.

Yes it would be fairly easy: 1. Start in one city only and concentrate on that. 2. Get your service listed in Google Maps. 3. Gradually expand. Job done. The only real defence against that is that Uber/Lyft could probably afford to undercut you until you go out of business, Walmart-style.

Can you point to an example of anyone doing this (successfully)?

Re: Lyft Files for IPO

#305

Post by rorykoehler »

pbreit wrote: post #302
rorykoehler wrote: post #269

Earlier quoted context omitted.

Setting up an airline isn't cheap either but plenty of people do it.

Setting up an airline is easier. You can lease a plane or two and fly one cherry-picked route. There’s no chicken/egg hurdle.

Buy a bunch of self driving cars and deploy in a city. No chicken egg there either.

Re: Lyft Files for IPO

#306

Post by Jommi »

ghaff wrote: post #119
Jommi wrote: post #114

Earlier quoted context omitted.

Could you link this "more and more data" ? As far as I know nothing substantial has been released. You should recheck your sources.

You may not agree with the conclusions, but here is one such study: http://www.schallerconsult.com/rideservices/automobility.htm

And if you read this survey you will see that the increase in rides is because TNC's make for better mobility options than current public transport. That suggests that there is a problem with current public transport (In America) and not with TNCs.

Re: Lyft Files for IPO

#307

Post by Jommi »

RandallBrown wrote: post #196
Jommi wrote: post #117

Earlier quoted context omitted.

You need to reread what a network effect is. It's exactly what goes on in a ridehailing platform.

I'm not really sure that's true at all. If all of my friends are using Uber and I'm using Lyft, I get the same amount of value out of Lyft whether anyone else is using it or not. Now, there is some network effect with new drivers signing up for a more dominant platform, making it harder to use others. Since drivers can (and usually do, in my experience) sign up for multiple platforms. That effect is greatly diminishe…

Im not talking about a onesided network effect. Im talking about indirect network effect concerning a two-sided market.

If more of your friends use Uber than Lyft, that suggests that there are more customers on Uber.

This means Uber is more valuable for the drivers as a platform.

This means more drivers will driver for Uber.

This means Uber has better availability.

This means Uber is more valuable to customers.

Re: Lyft Files for IPO

#308

Post by Jommi »

sincerely wrote: post #154
Jommi wrote: post #127

Earlier quoted context omitted.

You should read more into this, but even though switching seems easy in theory, the truth is different. Going through another driver application process / training takes time, and even then using two apps creates extra annoyance. You would be surprised how lazy People are even if there was a way to grow their earnings through switching.

You're right that people often make lazy decisions, but every single Uber I've taken in the last year had a Lyft sticker as well and vice versa.

Which doesn't necessarily indicate that they would drive 50/50 for both. It might be closer to 80/20 easily.

Re: Lyft Files for IPO

#309

Post by IshKebab »

pbreit wrote: post #304
IshKebab wrote: post #276

Earlier quoted context omitted.

Yes it would be fairly easy: 1. Start in one city only and concentrate on that. 2. Get your service listed in Google Maps. 3. Gradually expand. Job done. The only real defence against that is that Uber/Lyft could probably afford to undercut you until you go out of business, Walmart-style.

Can you point to an example of anyone doing this (successfully)?

Yes there are actually loads of regional Uber-like companies that only operate in particular regions. Most recently I went to Thailand where they use Grab. It is advertised in Google Maps.

Re: Lyft Files for IPO

#310

Post by djhn »

nradov wrote: post #293
gaius wrote: post #279

Earlier quoted context omitted.

Ownership as we know it will become meaningless. Sure, you could buy a self-driving car, but do you need to? I wonder if people who say things like this are actually drivers, because every driver I know has a car full of random stuff that lives permanently in it incase it’s needed. No one is going to carry all that with them; if they did it wouldn’t live in the car in the first place! Ownership isn’t going anywhere,…

My car also serves as a convenient mobile storage locker whenever I go somewhere. I can park it and leave my jacket, sports equipment, lunch, umbrella, etc without having to carry that stuff around with me. But it's easily accessible if I need it. That convenience and security is worth a lot.

To me this sounds like a bizarre example - I and everyone else who lives in European cities do carry all of these things on our persons. I don't see this as an inconvenience. It all fits neatly in a briefcase or a backpack of your choice.

Besides lunch of course, because we're not savages. We enjoy our lunch sitting down at a restaurant. ;)

Post reply on HN