Is Uber Bleeding to Death?
In message , at 11:39:14 on Wed, 12 Oct
2016, tim... remarked:
What do you call the referral bonus, paid for by Uber not the
drivers, if not a subsidy to the drivers fulfilling those trips?
so when I get a 20 quid M&S voucher for recommending my insurance
company (whoever) to a friend, that is a subsidy, is it?
No, because the insurance company buys them in bulk off M&S (at a
discount because many get lost/thrown away). To bribe people to refer
insurance customers - it's not M&S bribing the insurance company £20 to
drum up more M&S customers.
Uber taxi drivers don't buy the £15 vouchers and hand them to potential
new customers (thus reducing their first fare by £15). That £15 is paid
by Uber HQ, and is therefore a £15 subsidy to the driver accepting the
voucher.
Promotional marketing models not your strong point are they?
--
Roland Perry
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