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It is a bit concerning that Uber is hemorrhaging money right now, being able to cost themselves lower than conventional cabs because they have such a massive am

It is a bit concerning that Uber is hemorrhaging money right now, being able to cost themselves lower than conventional cabs because they have such a massive amount of capital. Outpricing your competition by making a loss/no profit is a nasty tactic, especially when your competition can't compete at a loss (for whatever reasons) and then goes out of business, only for the surviving business to then rise their prices to whatever point they want, given that there is now no competition.

criddell 11y ago
> being able to cost themselves lower than conventional cabs because they have such a massive amount of capital Is Uber less expensive than regular cabs? My experience in Uber so far has been uniformly excellent and my experience in regular cabs has ranged between ok and dismal. I think I would probably be willing to pay around a 25% premium to use Uber over a regular cab. The traditional taxi operators haven't needed to care about customer experience for so long, that I'm not sure they can change.
- mikeash 11y ago
  UberX typically is cheaper than a cab. The price is the same or lower, and you don't tip. If you go for a black car it's a bit pricier.
- toomanybeersies 11y ago
  UberX is the only Uber available in NZ, and without surge pricing it's about 25% cheaper than a normal cab, and almost half the price for me to get to the airport, due to outrageous taxi fees at the airport. Uber in NZ also operates much closer to a Taxi too, drivers must have a P endorsement, which allows you to commercially charge passengers, and requires you to pass a test and have a govt run background check, and have a clearly visible govt issued ID card while carrying passengers. Most of the drivers for uber are therefore former taxi drivers, who drive for uber because it pays better and gives better flexibility.

criddell 11y ago

> being able to cost themselves lower than conventional cabs because they have such a massive amount of capital Is Uber less expensive than regular cabs? My experience in Uber so far has been uniformly excellent and my experience in regular cabs has ranged between ok and dismal. I think I would probably be willing to pay around a 25% premium to use Uber over a regular cab. The traditional taxi operators haven't needed to care about customer experience for so long, that I'm not sure they can change.

mikeash 11y ago
UberX typically is cheaper than a cab. The price is the same or lower, and you don't tip. If you go for a black car it's a bit pricier.
toomanybeersies 11y ago
UberX is the only Uber available in NZ, and without surge pricing it's about 25% cheaper than a normal cab, and almost half the price for me to get to the airport, due to outrageous taxi fees at the airport. Uber in NZ also operates much closer to a Taxi too, drivers must have a P endorsement, which allows you to commercially charge passengers, and requires you to pass a test and have a govt run background check, and have a clearly visible govt issued ID card while carrying passengers. Most of the drivers for uber are therefore former taxi drivers, who drive for uber because it pays better and gives better flexibility.