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> When you have a shit ton of eye balls, you have a money printing machine: > They can make zero profit on rides and make them $1/10 mile trip This only works
by jimmywanger 10y ago
> When you have a shit ton of eye balls, you have a money printing machine:
> They can make zero profit on rides and make them $1/10 mile trip
This only works when your incremental costs are next to nothing. The IRS lets you deduct about 40 cents a mile for business expenses when you drive for your job.
That's the baseline for incremental costs for servicing passengers. Do you think you can sell 4 dollars worth of ads during a 10 mile trip, no matter how much data you have on the consumer? Plus the database on customer demographics and buying preferences is very jealously guarded by both FB and Google.
Not to mention the huge amounts of capital tied up in cars, self-driving equipment, and a group of techs that are maintaining and repairing all these cars. That adds even more incremental costs, servicing all the capital.
We're talking about having ads that are a couple of orders of magnitude more profitable than Google and Facebook ads are right now.
- nojvek 10y agoBiggest driving cost for driving is humans. Once you have self driving cars, a $50k electric car with 20 year span and a million mile life costs about 5c a mile. Even with servicing and maintenance costs, you still make quite a bit of money on $1/mile.