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>UberPool and UberHop are actually productivity increases. A single driver can provide 2-4 trips worth of value with about 1 trip's worth of work. However, that
by YokoZar 11y ago
>UberPool and UberHop are actually productivity increases. A single driver can provide 2-4 trips worth of value with about 1 trip's worth of work. However, that's just going to drive the cost of trips down. If Uber and its drivers end up not increasing their revenue per driver trip, the productivity statistics would look the same even though drivers are moving four times as many people!
In this scenario, you need only 1/4 the drivers, and some fraction of those 3 newly unemployed people will eventually do other work. That is the productivity growth.
- natrius 11y agoProductivity is roughly customer payments divided by the costs of doing business. If prices drop, Uber and drivers can collect the same amount of payments with the same costs of doing business. Fewer drivers could be used, but that won't increase our productivity statistics. In the plain English sense, productivity went way up! We're just measuring something else.
- qq66 11y agoYou wouldn't necessarily need only 1/4 the drivers. The reduction in prices would increase demand for transportation by some amount. If that amount is less than 4x, you would see an industry employment decrease, but if it was more than 4x, you would see it increase, just like how auto industry employment increased as cars were able to be made for cheaper and cheaper prices.
- deleted 11y ago[deleted]