Sharing Daily Discoveries About Personal Finance And Business Topics

Uber Talk of Going Low End For More Profit

financial literacy

There was this piece of news going around where the CEO of Uber, Travis Kalanick, was riding in a car with an Uber diver. The driver, Travis Kalanick, apparently voiced his opinion about how the rates for the high end cars have dropped which sparked a debate. While the main news of this story piece revolved around more about the CEO bluntly scolding the Uber driver as like a life complainer of sorts one of the things that stuck out to me was how the CEO said that they only transitioned more to low end services because if they didn’t they would go bankrupt.

That was fascinating to me personally as I am always interested in learning small details like those on why businesses make the decisions that they do. The usual story I hear for people that go after the higher end market is that usually these types of customers overpay so much and don’t care which means more profit for the supplier. However, there is obviously less customers to potentially reach to the point where you have to wonder if targeting the majority is better.

I know for buying things the term “prosumer” is used a lot where regular people want something of high quality that say a professional could use. I can see for something like transportation though it probably does make more sense to focus more on the low end affordable route. For me personally I often see people create high end offerings as more of a marketing commodity to get more attention while potentially selling it from time to time. Example, restaurants that focus on the average person while having like say a $300 burger on the menu. That would sound like the safe way to do it in many ways huh?

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