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Uber's current problem is they have run out of things to innovate on. They've pretty much nailed the UX in their app, and all they're left with is cars taking p
by dchuk 10y ago
Uber's current problem is they have run out of things to innovate on. They've pretty much nailed the UX in their app, and all they're left with is cars taking people from Point A to Point B. What is left to improve on there?
So now, their only way to grow is to race to the bottom on price and undercut their competitors. And the only way to do that is to light billions of VC dollars on fire in the form of subsidized trips. That money isn't being invested in R&D or any form of innovation, just bridging the price gap between what the ride should cost (because of driver + vehicle costs) and what they are charging (which is a stupid low price most of the time).
The longshot they're taking on innovating by transitioning to self driving cars is downright reckless considering nearly all experts agree we're at a MINIMUM 5 years off from anything feasible in the real world, more likely 10+ years.
So they're going to have to raise their prices, or continue raising funds at an absurd rate (mind you, they've already raised $13,000,000,000 damn dollars). And they'll have to continue to light that VC money on fire in subsidized rides, rather than innovating on their product, because there's not really any other way to innovate on these rides.
As for the subsidies, I can't even understand why they are lowering their prices so aggressively anymore. It feels like each time I get into an Uber it's slightly cheaper. I was happy paying $25 for an uber to the airport rather than $30 for a cab, but now it's something like $14, which is great for my wallet, but I really don't even need it that cheap. It's bizarre.
- falloutx 10y ago> I was happy paying $25 for an uber to the airport rather than $30 for a cab, but now it's something like $14 You were happy paying $25, but they wanted more costumers, even the ones who just want to pay 15.
- alikoneko 10y ago> They've pretty much nailed the UX in their app ... Ehhhh....I disagree because I have a less than stellar UX every time I use it. However, my situation is more or less an edge case. I rely on Uber to take me from the train station to work every morning. The train station is right by FLL. It's even called the Fort Lauderdale AIRPORT Station at Dania Beach. I have to call the drivers and tell them I'm at the train station and not the airport every time, and sometimes, they'll cancel or just go to the airport anyway. The GPS will place me at the airport sometimes too for extra fun. I've reported this several times to Uber, and it's still not fixed. It's also important to note a self driving car would make my situation worse (no one to contact when/if the app gets it wrong). I would switch to Lyft, but after having a driver flat out refuse a fare, and leave me stranded in Miami, I'm not so keen on that idea.
- dchuk 10y agoI wonder how much of those issues are Google Map's "fault"? (genuinely curious). I have the same issue where every damn time the uber tries to pick me up in the alley behind my apartment, not the street, for no good reason.
- tenminuteslater 10y agoWhy do you think you couldn't contact a self driving car? It would certainly be possible to build some AI that can handle "special instructions".