
The cost of loyalty - hkmurakami
http://avc.com/2014/10/the-cost-of-loyalty/
======
obviouslygreen
The unspoken premise here is that the only important thing about loyalty is
how much it costs you compared to always using the least expensive service.

I'd like to point out that many people (myself included) complain about
phenomena like the race to the bottom in mobile app prices and the death of
customer service in our airlines... but then we (myself often included) make
measurements like this, with loyalty rarely considered and, when it is, often
derided as simply a source of extra overhead.

This post is a great example: The author happily compares these companies
solely on cost, with no reference at all to quality in any way, shape, or
form.

There are more dimensions to goods and services than how much you pay for
them, but we too often make that not only the primary metric (by a long shot)
but sometimes the _only_ metric, and that misses all sorts of points.

Don't expect quality services to start and stay when your primary view of
"loyalty" is its "cost."

~~~
ForHackernews
> The author happily compares these companies solely on cost, with no
> reference at all to quality in any way, shape, or form.

Do these ride-sharing companies even have quality metrics in any meaningful
sense? Surely the quality of service you receive is a function of the
individual driver-subcontractor, not of whatever mobile app you happened to
hail them from?

~~~
pbreit
They obviously have all sorts of quality metrics. What exactly do you mean?
Driver density, time to pick up, time to deliver, routes taken, feedback
ratings, car quality, etc.

~~~
ForHackernews
Sure, but none of those metrics are dependent on the particular service in any
real way. They're either a) properties of an individual car+driver or b)
properties of the city/traffic situation/environment in which that driver
operates.

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JacobAldridge
Wow - we've gone from a disruption startup to needing a market aggregator in
how long? Two years?

For those who have tried the various services, how do they compare in other
ways (product quality, service standards, market penetration)? Or would you
buy solely on which was the best price?

~~~
coev
This does vary according to location (as the article says), but I've used
cabs, Uber and Lyft in SF. I prefer Uber and Lyft by far over the standard cab
services. The cars and drivers are generally nicer. I don't really have a
preference for Uber vs Lyft and tend to go with the cheaper/more convenient
option in the moment. However, I do find that Lyft drivers are generally more
social while Uber drivers will let you keep to yourself more easily, so I also
book based on mood sometimes.

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ojbyrne
So, interesting problem (but not hugely), that as always, ends with, oh... one
of our portfolio companies has the solution.

I'm so tired of PR.

~~~
davemel37
Calling this PR is a stretch. Other than the linking to Sidecar and not
linking to Uber and Lyft, this post is no different than Warren Buffet
drinking Coke during a TV interview.

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pbreit
I don't think it's a good idea. People don't really shop around Uber, Lyft or
Sidecar. Most people make their decision to use one predominantly or
exclusively. Same with drivers. People aren't going to Kayak through every
$5-20 decision to save a buck. Especially when there are other important
variables and brand promises.

And the premise is a little insulting in that I'm supposed to feel like an
idiot for having picked one provider.

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wbeckler
Same problem existed in accommodations with the rise of Airbnb and Homeaway
and Booking.com, so we created
[http://AllTheRooms.com](http://AllTheRooms.com), which has turned out great.
Aggregators still make a lot of sense.

