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I'd argue they did - I was around San Francisco when Uber was getting off the ground, and the initial service is exactly that: convenient, high-quality, provide
by potatolicious 9y ago
I'd argue they did - I was around San Francisco when Uber was getting off the ground, and the initial service is exactly that: convenient, high-quality, provided professional drivers with commercial insurance.
It was also expensive, and nowadays known as UberBlack, and is a market many times smaller than Uber's ambitions.
UberBlack was a great product with unit economics that would allow for a high-quality product that was a win-win for both drivers and Uber. But it was not a big enough product to justify Uber's stratospheric valuation - hence UberX.
I think we're running into the fundamental truth here that providing high-quality taxi rides at such cut-rate prices is not possible, at least not when a human is at the wheel.
Cutting corners and playing dirty are IMO a manifestation of this fundamental problem.
- dullgiulio 9y agoAbsolutely agree. Another part of the problem is the need to become a unicorn at any cost. Why prefer having a huge valuation (based on thin air) when you can have a more modest but totally profit generating business? This is a question that many in the Valley should answer honestly.