http://www.lifeinbeta.org/2011/01/why-living-social-can-sell...
3,028 karma · joined October 10, 2006
http://www.lifeinbeta.org/2011/01/why-living-social-can-sell...
This is the very reason we never dropped the price of Swipe to free, even though Square and other competitors did so. Because of the relatively complicated nature of the signup process, their ratings quickly dropped to 1-2, and ours remained 4-5. Additionally, our customers were more qualified and converted at a much higher rate.
Imagine a world where sublets were completely unrestricted on both a governmental and leasing level. If I go on vacation, I would rent out my place. Theoretically, because my place is used 100%, the demand for these massive, overpriced hotels taking up prime real estate in our nation's cities would dwindle - and the efficiency of the city would actually improve.
Instead of locking up this prime real estate in hotels, which are seasonal and affected by economic hardship, we'd enable more people to live downtown full-time, close to their jobs - which would lower transportation costs, monthly housing costs, overnight rental costs, and in general bring efficiency to the market.
I lived in Boston for a summer in 2006, and I got to witness the transition from decades-old transit tokens to paper cards.
It was a giant cluster: Horrid machine usability, non-reusable transit cards, and untrained station personnel. It made me wonder what sort of premium the MBTA paid for that "upgrade" and how much rider confidence was lost.