Killing competition

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Uber comes to market with cheap rates for riders and incentives for drivers.

One Galle Face opens with 3 months rent free for shops and parking free for shoppers for 3 weeks.

Both think by getting all the people to use them once will get customers lured to them forever. Uber and One Galle Face think they can kill competition. They seems to think that is the only way to survive. Go mass market at any cost. Good for you until you have cash burning gods ( investors) by your side. But then what happened to Uber Eats in India.? They sold their operation to Zomato to cut their global operational costs. Why Uber is still to make a profit? Their losses are colossal, in billions of dollars per annum.

While Uber and Pickme sent many traditional taxi services out of business, Kangaroo held its ground and is thriving. They served a niche customer segment who liked a personalized clean cars with professional drivers. They are expensive than other options. Yet most of the customers stayed with kangaroo. Then they created their own ride hailing app. The app can be so much better, but they kept with the new trends and acquired a different set of customers too.

So, no one should think they have to go All out and declare war on a sector to win it. There are so many ways to win. There are so many cutomer segments.

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