A better experience for a higher price is not something new. The convenience of getting your groceries delivered, your laundry picked up and delivered, and your cravings at your door within the hour is only valuable insofar as you can get equivalent quality at a lower price. In other words, convenience alone is not enough. The magic happens when you provide a better experience AND a lower price. The lower price is everything. A lot of people mistakenly adopt the Uber for X model in industries where the unit economics do not allow them to provide the product or service at a lower price. The beauty of Uber is that it is better, faster, and cheaper than a taxi.
Saving people money has been the driving force behind many of the biggest consumer wins of the Internet area.
Sarah Tavel of Greylock breaks down why here.