Ober could have overcome that, if they wanted to, a t least in theory, by raising the proportion of the ride that went to the driver. The same thing happens with commission rates. You see the same thing across 20 and 25 % commission rates. As long as you have enough drivers waiting by the curb looking to make a little bit more money, these things are going to happen.
Economist John List of the University of Chicago talks about his book, The Voltage Effect, with EconTalk host Russ Roberts. He discusses what determines scalability and argues that the only good ideas that count are those that scale. Along the way, he draws on his experiences as chief economist of Uber and Lyft to peer inside the black box of ride sharing.