The answers to all your questions are here.
E-hailing services are the go-to services for many people now in this tech-savvy era. Why drive yourself when you can book a driver? Why go through the hassle of going out to buy food when you can order for it to be delivered through your smartphone? The innovative tech has truly allowed us to enjoy a major upgrade in lifestyle. But did you realize, in comparison to when the service was first introduced, prices seemed to have gone up?
If this nagging thought has lived rent-free in your mind, you aren’t alone. In fact, a TikToker took the time to explain why this is happening.
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Basic niaga. Bisnes kena ada untung. https://t.co/qe4S50Nljw pic.twitter.com/qvVFEsJKUc
— FE (@faizedzahar) June 19, 2021
The video was in response to a quote tweet posted by a Malaysian, who pointed out how a food delivery service seemed to have multiple additional fees on top of the cost of the meal they ordered. In the video, there are two talents: one playing the role of a CEO and one playing a customer, tasked with asking questions. The CEO is asked why the price of a trip is almost double what it used to be.
“That’s because we used to offer rides at a loss.”
After the customer is astonished to find out they were losing money on each ride, the CEO further clarifies why they did that.
“We used to offer cheap rides to kill our competition and lock you into our service. I guess it worked because now you can’t live without us!”
After killing the customers’ hopes of having cheaper rides again, the CEO breaks the reality that as a public company, they need to make a profit to please their investors. The driver shortage that is happening doesn’t help with the problem, further pumping up the prices. This is the reality for many companies and businesses, who start with cheap prices and then, once they have established demand in the market, switch it up to start making a profit.
So while e-hailing/delivery services are definitely convenient, they may not be as appealing as they once were – especially to those who are looking to economize.
*Cover Image Credits: TikTok