Should-Read: Ben Thompson: Blue Apron Files for IPO, Network Effects and Customer Acquisition Costs, Uber Concerns

Should-Read: Ben Thompson: Blue Apron Files for IPO, Network Effects and Customer Acquisition Costs, Uber Concerns: “I did find this bit in The Information article interesting… https://stratechery.com/2017/blue-apron-files-for-ipo-network-effects-and-customer-acquisition-costs-uber-concerns/

…In fact, smaller rivals like Lyft can spend a lot less money per ride in order to attract enough drivers to serve the company’s customers. That’s because it needs only a fraction of the number of drivers that Uber does, and it can get by with more part-time drivers versus Uber, which needs as many full-time drivers as possible to meet its customers’ demand.

Part-time drivers are the marginal supply I was referring to above, and Lyft reported last year that 82% of its drivers work fewer than 20 hours a week; it’s possible that it is these part-time drivers, exposed to Uber’s relentless rate cuts but ineligible for its high-volume bonuses, are what has kept Lyft (which generally monetizes better on a per-ride basis, in part because of tips) alive. If so—and again, there is very thin information here—that would be for Uber a truly large penalty for a lack of financial controls and properly calculated unit economics…