'Why is the market for dog boarding on Rover behaving so irrationally ?
Markets generally operate in a predictable coherent patterns mixed with periods of irrational outliers. However what amazes me about this platform and services renders is that it defies the traditional price-quality equilibrium. In that as level of service and satisfaction increase so should the willingness to pay-price of service.
However in this business, I observe the exact opposite. If I board my dog a doggie retreat ah spends 16-20 hours a day in a 5x5 steel cage that are in rows next to other dogs. And for this I pay $75-100 a night.
However, if someone trusts me to board their dog in my home, they get 1:1 attention and interaction throughout the day and are part of the family. Much higher level of service but for some unknown reason after Rover takes a questionably high cut of 20% I take home maybe 10-15% of what a boarding location does.
A couple of questions for everyone, how can we marshal our sitter community to consider to a minimum daily rate based upon criteria of service.
Why have we accepted a business model that behaves irrationally and what can Rover do with their 20% to help re-educate or change the perception that our rates should somehow be less than at a boarding facility.
How does rover charging clients a booking fee impact our ability to be compensated for our excellent service given the irrational market
Consider Uber isn’t giving away free rides just because you are not in a cab, those ride share apps are an example of how parity in rates with the other tradional business could work.
Bottom line if we all are giving the level of service I believe we are, how much longer are we going to accept not valuing our time or talents?
"Consider Uber isn’t giving away free rides just because you are not in a cab, those ride share apps are an example of how parity in rates with the other tradional business could work." Not true, Uber destabilized what used to be an industry w/ full time potential.