Consider a race to the top.
How can Lyft possibly compete with Uber? Scale is often the secret to a commodity business, and if Lyft races to be ever cheaper than Uber, the only possible outcome doesn’t look good. It’s a cutthroat corner-cutting race.
But what happens if Lyft (or your project) decides to race to the top instead?
What if they say, “we’re always a dollar more than Uber”?
And then they spend that dollar, all of it, on the drivers…
What kind of person buys the cheap ride, the ride with the stressed-out angry drivers?
So instead of drivers abandoning fares they accept (they’re under so much pressure to make ends meet, Uber drivers do this all the time–it happened to me four times in one weekend), you end up with drivers that were good enough to be able to charge an extra dollar…