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But where are the profits? Uber is already subsidizing rides, while cabs and cab companies have to turn profits. Trying to build loyalty with points just increa

by jedrek 9y ago

But where are the profits? Uber is already subsidizing rides, while cabs and cab companies have to turn profits. Trying to build loyalty with points just increases Uber's costs, as they can't push that off onto drivers. Retaining customers and increasing ridership by increasing loss per trip is not a sustainable model. Ride services are completely different from airlines, if only because the capital outlay is incomparable. You could run a ride sharing business and get two hundred drivers driving around New York by December for 250k. That won't even pay for a single flight crew for a year, much less a plane to put them in.

ghaff 9y ago
Furthermore, pretty much by definition, pretty much all airline passengers are travelers. Some car hire users are travelers. Many are just people going out for drinks in their local city. I assume the mix varies by locale. I don't use taxis etc. a lot when I travel but if I did a single goto brand would be useful. Locally, if Bob's app was the best local taxi service, I don't really care if someone else operates in 500 cities worldwide. (Just like I don't care that the car service I use to get me to the airport covers only a slice of even my local area.)