3 ms·

I'm in no position to guess which way winds are blowing but... I don't think uber (or lyft) will ever be totally dominant purely because of network effects. Pa

I'm in no position to guess which way winds are blowing but... I don't think uber (or lyft) will ever be totally dominant purely because of network effects. Passengers and (especially) drivers are mobile, and can switch services back and forward between apps. All you need to compete is a regional network. The global network is helpful on the margins, but an uber for Lisbon should work fine.

mstade 10y ago
Anecdata to support your point: in Stockholm the taxi companies have caught up in terms of convenience vis-à-vis apps, registering payment methods etc., to the point where I just use them rather than Uber. To me, Uber never competed on price, it was the convenience, and the competition has caught up to the point where Uber now seems clunky almost.
- mi100hael 10y ago
  Uber definitely competes on price. Their fares are almost always the lowest of any competitor, especially compared to traditional cabs. That's essentially their only strategy other than allowing mobile hailing & payment (which is not particularly hard to replicate). The reason Uber is blowing through so much venture capital is because they are bleeding cash in all directions on fare subsidies.
  - CaptainZapp 10y ago
    Are you willing to let Uber spy permanently on you in order to save a few bucks? http://www.wired.co.uk/article/uber-track-location-data-update-turn-off http://www.wired.co.uk/article/uber-track-location-data-upda...
    - doomslice 10y ago
      Not suggesting that this is the difference between it being worth it or not for an individual person, but I didn't feel like taking an Uber this time out of LAX and did a traditional cab to Pasadena -- it was $90. The Uber app quoted me at $38 and $33 if I had wanted to do pool (side note, I've ridden pool 3 times between LAX and Pasadena and not once have they ever picked up another passenger). A savings of $50 for a one way trip is definitely at the point where the "spying" is worth it for me.
    - ipqk 10y ago
      And it's not permanently. It's for a few minutes after drop off. Assuming you trust them.
      - CaptainZapp 10y ago
        Assuming you trust them. Well, in my book that's exactly the rub. I, for one, don't trust them at all. Pulling that extra effort to track Apple devices even after the app has been deleted and other shenagigans they pulled in violating their customer's privacy doesn't really help in the trust building department: https://m.theregister.co.uk/2017/04/24/uber_cloaked_its_spying_but_apple_gave_it_a_wrist_slap/ https://m.theregister.co.uk/2017/04/24/uber_cloaked_its_spyi...
  - mstade 10y ago
    Sure, in general, but this is why I wrote "to me" as in I don't care about he price difference. (Which, btw, in Stockholm is not very significant.) My account was simply meant as an anecdote to support the parent comment, that a local alternative can compete quite successfully. In my case, the convenience was key, not cost. That said, if they were consistently half the price of regular taxis I might reconsider. But only might because it's unclear to me who's responsible if things go missing during my trip, if there's an accident or the likes. With the traditional cab companies in Stockholm it's very clear who to turn to. But I agree with you in the general case, certainly.

mstade 10y ago

Anecdata to support your point: in Stockholm the taxi companies have caught up in terms of convenience vis-à-vis apps, registering payment methods etc., to the point where I just use them rather than Uber. To me, Uber never competed on price, it was the convenience, and the competition has caught up to the point where Uber now seems clunky almost.

mi100hael 10y ago
Uber definitely competes on price. Their fares are almost always the lowest of any competitor, especially compared to traditional cabs. That's essentially their only strategy other than allowing mobile hailing & payment (which is not particularly hard to replicate). The reason Uber is blowing through so much venture capital is because they are bleeding cash in all directions on fare subsidies.
- CaptainZapp 10y ago
  Are you willing to let Uber spy permanently on you in order to save a few bucks? http://www.wired.co.uk/article/uber-track-location-data-update-turn-off http://www.wired.co.uk/article/uber-track-location-data-upda...
  - doomslice 10y ago
    Not suggesting that this is the difference between it being worth it or not for an individual person, but I didn't feel like taking an Uber this time out of LAX and did a traditional cab to Pasadena -- it was $90. The Uber app quoted me at $38 and $33 if I had wanted to do pool (side note, I've ridden pool 3 times between LAX and Pasadena and not once have they ever picked up another passenger). A savings of $50 for a one way trip is definitely at the point where the "spying" is worth it for me.
  - ipqk 10y ago
    And it's not permanently. It's for a few minutes after drop off. Assuming you trust them.
    - CaptainZapp 10y ago
      Assuming you trust them. Well, in my book that's exactly the rub. I, for one, don't trust them at all. Pulling that extra effort to track Apple devices even after the app has been deleted and other shenagigans they pulled in violating their customer's privacy doesn't really help in the trust building department: https://m.theregister.co.uk/2017/04/24/uber_cloaked_its_spying_but_apple_gave_it_a_wrist_slap/ https://m.theregister.co.uk/2017/04/24/uber_cloaked_its_spyi...
- mstade 10y ago
  Sure, in general, but this is why I wrote "to me" as in I don't care about he price difference. (Which, btw, in Stockholm is not very significant.) My account was simply meant as an anecdote to support the parent comment, that a local alternative can compete quite successfully. In my case, the convenience was key, not cost. That said, if they were consistently half the price of regular taxis I might reconsider. But only might because it's unclear to me who's responsible if things go missing during my trip, if there's an accident or the likes. With the traditional cab companies in Stockholm it's very clear who to turn to. But I agree with you in the general case, certainly.