basically they’re going to try to maximize profit so they’re going to do a business calculation. if there is a segment of the population, (lets say 30% of people for example) don’t order an uber or food delivery because of the costs, and they can cut their costs by 40% per delivery by making cars self driving, they might lower costs for food delivery by $9 to get that 30% of people that are too price sensitive to use their service to become customers. i for one am one of those people that almost NEVER orders food delivery or ubers solely because of the cost. but if it went from $22 to $13 i might consider it. that’s just an example and im making up numbers to demonstrate the point. there’s always a business calculation when it comes to whether they lower costs or not. sometimes lower cost increases profit. when businesses make a new product or service usually when it’s new that service is really expensive, and their main goal is cutting the cost so they can sell to the average consumer and have a huge market share rather than just selling to an elite few.
Why would they lower costs when they can just not do that?
basically they’re going to try to maximize profit so they’re going to do a business calculation. if there is a segment of the population, (lets say 30% of people for example) don’t order an uber or food delivery because of the costs, and they can cut their costs by 40% per delivery by making cars self driving, they might lower costs for food delivery by $9 to get that 30% of people that are too price sensitive to use their service to become customers. i for one am one of those people that almost NEVER orders food delivery or ubers solely because of the cost. but if it went from $22 to $13 i might consider it. that’s just an example and im making up numbers to demonstrate the point. there’s always a business calculation when it comes to whether they lower costs or not. sometimes lower cost increases profit. when businesses make a new product or service usually when it’s new that service is really expensive, and their main goal is cutting the cost so they can sell to the average consumer and have a huge market share rather than just selling to an elite few.
It seems like their calculations always return high prices. I can’t think of any service that has had the price drop significantly.
just google things that have dropped in price. there’s been a few