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Yes, that's correct. The taxi business (now they called "ride sharing" for some reason!) is just like air travel. Price matters the most but brand and quality o
by msoad 10y ago
Yes, that's correct. The taxi business (now they called "ride sharing" for some reason!) is just like air travel. Price matters the most but brand and quality of service is important as well. It's a very low margin business and has a low barrier to entry.
This makes Uber a risky investment in my opinion. Once Uber decides to make money, the real game will start. You'll see lots of competition and not much appetite for losing money like now.
Driverless cars?! That's going to make barrier to entry even lower but it's science fiction for next decade anyways.
- bogomipz 10y ago>"Price matters the most but brand and quality of service is important as well." Many drivers drive for both Lyft and Uber so what exactly is that brand? The app? I don't see a lot of brand to be loyal to.
- xapata 10y agoPerhaps that differs by city. Some cities have more competition among rideshare apps than others.
- CamelCaseName 10y ago>Many drivers drive for both Lyft and Uber so what exactly is that brand? The app? I don't see a lot of brand to be loyal to. I believe this is incorrect. Many drivers stick to one because they get a guaranteed wage if they're online for 50 minutes per hour and pick up every call they get. As for customers, switching costs might be low, but unless there's a reason to switch, why would they?