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Discussion: Uber CEO Explains The Company’s Taxi-Killing Pricing Formula

ph.logo.sublogos.news.white-DISCUSSIONBusiness Insider Article

When was the last time you saw a pricing strategy completely alter an industry? Uber is upending 2 segments – the black car and taxi of the transportation industry. An innovative way to order and bill car service.

Top Comments

Scott Francis

President, Strategic Pricing Solutions

Uber is providing some interesting tests. One of the reasons taxi prices are so high is cities control the number of licenses available. When they restrict the licenses, the price for each goes up. To make money, taxis have to charge higher amounts. It will be interesting to watch the legal/ regulatory issues get resolved.

Jim Broderick

Principal Consultant at The Pricing Pyramid

Scott – You are absolutely correct about the Taxi piece. Uber’s value prop is also giving Car Service/Chauffeured Transportation to people at their finger tips – cheap. Having been in this industry, they are turning it upside down with a completely different method of ordering and pricing.

More Here: http://www.linkedin.com/groups/Innovative-Pricing-in-Transportation-4260036.S.5806456717906571264

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