this post was submitted on 22 Apr 2024
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“We want to be a middle man”
They say that during the California gold rush, the people who got richest were the shovel salesmen
Pretty sure it was the people who had the money for heavy equipment and labor that could get the deep gold the prospectors found, but couldn't reach.
Pretty sure it was the few people who controlled the amount of supply to the people who wanted the gold after taking the gold from the miners
That came later.
Nah
They are fools, the richest were the people who bought the mines.
To be fair, Trainline started up years ago as a middle man that charge the same for tickets as train operators do (the price is regulated by National Rail) but with a surplus for a service that doesn't convey any extra value, and they're still quite popular.
Wait, how is that profitable?…
They spent a lot on advertising to begin with, specifically advertising that broke the guidelines, but was only taken down after everyone had heard the name and the idea that it was cheaper to use Trainline: https://www.theguardian.com/media/2009/may/20/asa-trainline-ad https://www.railforums.co.uk/threads/misleading-advertising-by-trainline.104250/
They eventually started getting commissions from train operating companies (TOCs) for selling tickets, which I believe the TOCs in turn used as justification for raising ticket prices above inflation. I used to work for a TOC that at the time refused to work with Trainline, because it meant having to install special ticket machines at loss only to make more loss on ticket revenue, but according to a mate of mine who still works there, they now accept the tickets because it's such a headache for staff when people come in having spent money for an invalid ticket.
So it's just shit for everyone except Trainline, and quite a stark example of how unsuited for public infrastructure a free market model is. Imagine if some company came along and said you could pay your gas bill through them for cheaper and it just wasn't true but everyone believes it so gas is just dearer now. Fucking bananas.
Advertising and travel data, other than IT low overheads.