Predatory pricing is a business strategy where companies intentionally set prices below cost to eliminate competitors, then raise prices to monopolistic levels once market dominance is achieved; this was exemplified by Uber's early $3 rides that helped them dominate the ride-sharing market before prices increased significantly.
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From $3 to Surge: The Evolution of Uber PricesHinzugefügt:
Do you all remember when Ubers were $3?
Like the predatory pricing model making things [music] incredibly cheap. Like they operate at a loss and everyone is signed up, wipe out all the competitors, then boom, monopolistic pricing. It gets me every time.
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