Sam Grobart, writing for Businessweek:
Gogo differs from Uber in another way. While the taxi app’s surge prices tamp down demand, thus preventing the service from becoming overloaded, they also encourage idle drivers to hit the streets and increase capacity. When Gogo charges more, capacity doesn’t improve. “They’re participating in something we like to call ‘incremental value capture’ without also offering a better service,” says Frances Frei, a professor at Harvard Business School. “If I’m going to raise your rates, I also have to give you a better value proposition.”
I was on an American flight recently (SFO-PHL, flying home from WWDC) where the only Gogo option for a flight pass was to sign up for a $50 monthly subscription. The only other option was an exorbitant hourly rate. The solution, I learned, is to purchase a day pass from Gogo before you’re on the plane.
★ Thursday, 27 August 2015