I remember when I first rode in an Uber I thought, “Man when they cost about the same as a taxi it’s over for taxis.” For some reason I assumed it wasn’t possible because in my mind at that time better experiences were inherently more expensive (read: I was an idiot)
-
-
I really think a lot of people are locked up in this kind of thinking that if something could exist it already would. I blame it on our view of efficient markets.
Show this thread -
We think that everything good is already taken. I’ve learned more recently that this is clearly, and emphatically, not the case
Show this thread
End of conversation
New conversation -
-
-
They're only cheaper than taxis because they are subsidising rides with investment capital.
-
Some parts of the business subsidize other parts, but that could last forever and the company could make money. Just because the company loses money doesn’t mean individual rides are a net loss. See:Amazon
-
My local cab company has a hailing app and is profitable.pic.twitter.com/AG0RIjkg5z
-
And I’d guess they’re not spending 1/1,000th the cash on growth
-
And I bet Uber pursues that growth while contributing 1/10th of the tax base the local company does while enjoying the same access to roads and drivers who can read
End of conversation
New conversation -
-
-
It might cost more (at least until self driving cars are viable). Uber/Lyft are burning 100s of millions to keep prices low in order to control demand. The unit economics might not be profitable.
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
-
-
Aren’t they haemorrhaging the best part of a billion dollars a quarter subsidising rides?
-
I mean there’s lots wrong with traditional taxi markets but they’d be cheaper too if somebody foot the bill for 50%+ of the driver’s income
End of conversation
New conversation -
-
-
That’s because their drivers make on average less money than the minimum federal wage (~$3/hr according to recent MIT study). There’s no free meal.
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
-
-
Many have said this, but it's worth reiterating: Uber, Lyft, etc are cheap on the backs of vulnerable workers ...and hopeful VCs. The former are powerless, the latter attempting to destroy existing industry by skirting regulations. This is not a new game. It's a very old one.
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.