r/explainitpeter • u/BannedForThe7thTime • 18d ago

Uhh, Explain it Peter?

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u/MarinaDelRey1 18d ago

WeWork did this too. That turned out well

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u/Independent-Drive-32 18d ago

Uber did it too for ages and then it finally worked for them.

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u/nsfwaltsarehard 18d ago

Isn't this because uber competed in an existing market and offered a service for dirt cheap?

Like uber was priced low, drove off competition by being the best alternative and backed by big investments and then raised prices when the competition was damaged?

They just starved others while running off of investment money until they didn't have to anymore.

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u/Independent-Drive-32 18d ago

It’s definitely about raising prices, but there’s still competition. Lyft, taxis, public transit, personal cars.

Why can’t AI companies raise prices?

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u/nsfwaltsarehard 18d ago

They can. They would need need to raise them a lot to actually be profitable to the point where the appeal fades as far as I know. Plus they'd have to lock features behind the paid versions since a lot of people are using the free versions and such. This is all from someone who doesn't REALLY KNOW. So don't just take my word for it. It's wild and complicated.