QUOTE(Tigerr @ Jun 5 2019, 12:18 PM)
If lesser drivers. Definately fare will surge up higher. If the high surge did not comes down n maintain there, riders will slowly to find other alternatives, and by the time lesser riders, the surge or fares will slow slowly adjusted back to its equalibrium.
That’s what I said before, some time back in this same thread.
Yes, equilibrium will be reached, a new norm will be formed. But consider this: is it easier to get a passenger with 100 drivers in your area, compare to just 10?
The dropout rate of driver will definitely be higher than passenger. Say, 100 drivers were serving 50 passengers. Now only got 25 drivers serving 50 passengers, leaving 25 passengers without a ride most of the time. If those 25 are invested in the ecosystem via GrabFood/pay/rewards, chances are they will give Grabcar another try. Unless really suay la, 100% of the time they can’t get a ride, then yes they might delete Grab app.
As I said before, biggest problem for drivers now is there are too many drivers. Now, Grab can solve this by allowing drivers to see how saturated an area is. Don’t even need bombastic programming. Just need a tiny area in the app with 5 minutes refresh time, to show that in this area, how many drivers are waiting for passenger. With this info drives can decide to wait it out with others or move on to area with less drivers, on top of the current passenger heat map. But Grab won’t do this either because they don’t have the programming prowess or it just doesn’t make extra money for them.
So, yes, PSV will cull away huge amount of drivers. Even if fare doesn’t stay up, the higher entry barrier would mean less people compete for potentially dwindling trips.
This post has been edited by Intimidated: Jun 5 2019, 12:38 PM