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The economy of scale is a ruse that doesn't actually exist in the business, and this is very well tread ground so I'm not going to repeat it. For Uber's amazing
by endorphone 10y ago
The economy of scale is a ruse that doesn't actually exist in the business, and this is very well tread ground so I'm not going to repeat it. For Uber's amazing efficiency, despite not owning the cars, paying for the fuel or normal labor costs, or even the insurance in most cases, and then taking 20% of the fare....they're losing insane amounts of money. The calculation doesn't seem to work out.
But in the end you've literally said that Uber isn't a cab dispatcher, but they're a super efficient cab dispatcher. Aside from that not being remotely true (their economics are absolutely abysmal), being a worldwide brand is close to meaningless. The overwhelming majority of rides happen locally.
Uber's primary beachhead has been a complete disregard for regulations. This may be justified in many cases, but it led to the corporate culture that is now eating it from the inside.