Prices for the services of all “Platform Business Models” are on the road to increasing, with companies like Uber and Airbnb now questioning, “what if we actually made money.”
The valuable services companies have been providing users with greater convenience for quite some time and now they want to make more in profits as a return to the quality services they provide, setting aside the target of grabbing the most of the market share from their competitors. Why? Because it doesn’t seem to be feasible anymore, especially in the wake of the pandemic. Their business strategy is to change, and the consumers would have to bear this load of increased service charges.
It is unfortunate for the consumers who enjoyed cheap perks and are used to availing of the services at a low cost because now it might be the time to pay more. The subsidized services wouldn’t stay like it any longer, and it is good news for the ones at the job, but not for the ones who enjoyed the perks of cheaper services.
The pandemic has had been tough for all, be it on the individual scale or industry. Uber and Airbnb are no exception, demands were low and now they are rising back to price brackets more than ever before.
”On average, Lyft and Uber ride cost 40 percent more now than they did last year, the average Airbnb is 35 percent more expensive, and food delivery apps have been gradually raising prices and adding new fees as well,” The New York Times reports. A fewer number of workers are willing to work in a risky setting for low amounts, there are chances to contract the virus, and the services companies are left with no other choice than to increase the incentive of the workers.
The strategies need to change with the passing of time, and that is exactly why these Silicon Valley companies are leaving behind their earlier business model of grabbing the most market share, with operations backed by investors. It is the need of time that consumers start to pay more for the valuable and convenient services to their doorstep.