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ramses0 : economics   8

Ridejoy: Lessons Learned - The Art of Ass-Kicking
marketplaces eventually get dominated by power sellers: people who compete to do a larger share of the business. Power sellers typically end up making enough from the marketplace to go full-time and eventually outcompete most other ”casual” sellers.

If you go from SF to LA and drive four passengers at $40 a seat (which would not be particularly comfortable), you’re basically capped at earning $3,000 a month, assuming you drive 25 days a month and spend $40 on gas per drive.

That’s not a huge upside for driving full-time compared to what you could make as a power seller on Airbnb or Uber (plus you have to spend the night in LA or drive back alone). The lack of financial upside for drivers reduced the likelihood of power sellers, which made it harder for our marketplace to have the inventory to grow, something I’ll keep in mind for future marketplace opportunities.
economics  startups  ideas  Business 
january 2017 by ramses0

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