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Uber makes a nice profit in mature markets, but that does not mean their current margins are sustainable. Its hard to imagine a future where they don't pay dri
by kansface 11y ago
Uber makes a nice profit in mature markets, but that does not mean their current margins are sustainable. Its hard to imagine a future where they don't pay drivers more.
- jonknee 11y agoIt's actually hard to imagine a future where they pay drivers at all. Uber is tailor made for autonomous vehicles.
- jameshart 11y agoThen they will pay vehicle owners to lease their cars short term instead.
- username223 11y agoEvil... And I'm almost certain it's what they'll do. Owner pays for purchase, upkeep, parking, and insurance, covering all the capital outlay, depreciation, and risk, while Uber skims off the profit. It's sort of "insurance in reverse."
- kasey_junk 11y agoAnd almost exactly like the taxi model they replace.
- morgante 11y agoWhat is "evil" about instigating a more efficient use of capital?
- username223 11y agoWhere do you get efficiency out of their plan? People tend to underestimate the true ownership cost of their cars, and Uber uses that to make them believe they're making a lot more per hour than they actually are.
- morgante 11y agoCapital sitting idly in driveways is inherently inefficient. How is that hard to understand? > People tend to underestimate the true ownership cost of their cars, and Uber uses that to make them believe they're making a lot more per hour than they actually are. That isn't an argument about its efficiency though. Maybe the marginal value of a car self-driving itself somewhere is $1 and the marginal cost of that driving is $0.99—it's still more efficient for that car to drive than not. Whether the owner thinks their profit is $1 or 1 cent doesn't really matter.
- seanlinehan 11y agoMore likely they would just own the cars themselves.
- jessaustin 11y agoAs a few HN folks have observed recently, that turns Uber from a wage-heavy (but always on the lookout for corners to cut) business to a capital-heavy one. That wouldn't be a impossible transition, but it would be a transition.
- fraserharris 11y agoIn fact, its the perfect transition from startup to mature company with a substantial moat. With a proven business model then can raise $Bs in non-dilutive debt-capital to finance vehicle purchases.
- jessaustin 11y agoHmmm maybe I finally understand their valuation...
- ghaff 11y agoAnd in the long run... I know there's this meme here that 100% autonomous vehicles are just around the corner. But (regrettably), I'm more inclined to side with the arguments that it's many decades away. [1] [1] http://www.csail.mit.edu/node/2241 http://www.csail.mit.edu/node/2241