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"The drivers who don’t completely depend on their work with Uber to pay their bills — a group that makes up about half of the company’s workforce — depress full
by aresant 10y ago
"The drivers who don’t completely depend on their work with Uber to pay their bills — a group that makes up about half of the company’s workforce — depress full-time workers’ wages."
I bet this creates a larger defensive moat than most competitors assume.
Uber is a supply/demand driven model (eg success w surge pricing) and even modest additional supply generates lower rates.
Lacking that same supply efficiency in full time driver platforms will keep their prices higher and without a significant price advantage consumers will stay with the known brands.
Not to mention the end game which is going to drop human drivers from the equation all together.
- hiou 10y agoUber is a investment fueled churn machine right now. Supply and demand(even as overly simplistic that model is) has yet to come into the equation. We will not have any idea the validity of the business model until the never before seen massive expenditures in driver acquisition subsides. Which probably won't be for several years or more.
- pfarnsworth 10y agoThe CEO already said that the top 30 cities produced over $1B in profits. I don't think your information is correct anymore.
- davidf18 10y agoWell, if this information is correct, then there is room for disruption starting with the cities with the highest taxi prices. Therefore instead of writing an article, build the app. Let it fly in NYC and offer 30% lower rates.
- massysett 10y agoOh wow, so Kalanick opened his mouth and a huge number came out. Does he have anything on paper to back this up? An audited financial statement? Even a napkin with numbers on it?
- deleted 10y ago[deleted]