> I have wondered if a pure market making app would work... let drivers and riders place bids... a driver can lower their bid to get hired faster and a rider can increase their bid to get picked up faster. The app would just take a fixed cut.
This is a good idea. But it's important to note that price is not the only relevant parameter here (as opposed to e.g. buying company shares, where two shares are exactly the same)
Other parameters:
1. Waiting time — how long is the driver and the passagner willing to wait?
2. Driver rating — the there a minimum rating a driver must have (and if passengers are rated, too, then vice versa)?
So there's the combination of, at least, these three parameters, which gets complicated. For example: as a passenger, would you rather ride with a 4.5 star rated driver with a 5 minute waiting time for $30; or a 4.0 star rated driver with a 2 minute waiting time for $26?
Could just offer it to the user. They might have said only drivers of 4.5 or greater. So the first one would be shown, but have the cheaper $26 one to the left and the $35 4.9 star one to the right. Let the user decide which they want.
This is a good idea. But it's important to note that price is not the only relevant parameter here (as opposed to e.g. buying company shares, where two shares are exactly the same)
Other parameters:
1. Waiting time — how long is the driver and the passagner willing to wait?
2. Driver rating — the there a minimum rating a driver must have (and if passengers are rated, too, then vice versa)?
So there's the combination of, at least, these three parameters, which gets complicated. For example: as a passenger, would you rather ride with a 4.5 star rated driver with a 5 minute waiting time for $30; or a 4.0 star rated driver with a 2 minute waiting time for $26?