How do these firms even compete with each other?
I understand that different taxi apps in an attempt to attract drivers simply pay more than others apps but how do they even secure the funding to launch an app like that in the first place? Same thing for food delivery apps
Imagine you were an investor, and someone told you, “I’m going to compete directly with Uber Eats, our competitive advantage is that we pay out delivery guys more”. Why would anyone fund that? That’s not a strong competitive advantage.
In: Technology
Software has a low barrier to entry. You dint need factories, you dont need warehouses, you dont need supply chains and logistics. All you need are some software teams, marketing, customer service. A few million in seed funds is enough to launch a minimum viable product in a limited region. “Millions” sounds like a lot, but its not much in the world of venture capital
Offer drivers a better rate, offer customers a cheaper ride, take less profit than the competition (or operate at a loss temporarily) to gain market share. Once you have a strong presence you can grow the team and expand into more regions
Easier said than done of course, but compared to starting a car company (for example), child play
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