Saturday, August 19, 2017

Competitive Price

What I am getting from what Atty. Bong Suntay said is that taxis are cheaper. One of the reasons why the market is flocking the the Transport Network Vehicle Services (TNVS) is that Taxis have a habit of refusing, so he answered it - from the taxi driver's point of view.

Case in point, after Uber's suspension by the LTFRB nightmare tales of taxis refusing rides, even rival TNVS Grab refusing rides, have spiked.

I am unaware if he said as much but the implied solution is to match the price since the taxi driver has already been taking it in his own hands.

My question is, if a service is cheaper and the market refuses to deal with the service, whose fault is that? 

If the market does want the cheaper service but the service is choosy, often refusing clients; why are we even talking?

Will matching the price of the more expensive rival help the taxi business?

Ultimately, traffic is indeed a big disincentive to go anywhere - even with money - and that brings us back to square one.

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