14 ms·

I never thought Uber nor Airbnb would be successful. Who invites strangers in their home or car. I was told as a kid to never get in a stranger's car ... now, a

I never thought Uber nor Airbnb would be successful. Who invites strangers in their home or car. I was told as a kid to never get in a stranger's car ... now, as an adult, I am riding with strangers all the time.

jandrese 8y ago
You never take taxis? Airbnb is even less of a stretch since B&Bs were the original hotel. Uber was not a surprise at all for me because I'd been complaining about the bloated and horrible taxicab system for many years. It was a market that was crying out for disruption. I remember in 2008 my local taxicab company had exactly two ways to hail a cab: phone or fax. They might or might not show up at the appointed time, and they'd certainly never send you any kind of updates. It cost upwards of $5 to step into the cab, and after that there were fees out the wazoo (per 1/6th mile fee, per 45 seconds fee, fee for having a bag, a fuel surcharge, a license surcharge, a regulatory recovery surcharge, and a couple others I forget). The cabs might have credit card readers but they were always broken so it was cash only. Drivers took weirdly roundabout backroads paths and always claimed it was fastest if you asked them about it, even though I knew the highway was not busy at 4am. Every single thing about the experience sucked. When they started crying later that Uber was killing their business my response was "good".
- SimonPStevens 8y ago
  Except Uber didn't start as a taxi replacement company. If you only remember it as a taxi company it was already after it had started to become successful. It was initially a carpooling app. The original pitch was that regular drivers would just drive to their own intended location and have an ability to see people on route who wanted to go the same way. Much harder to pick that idea out as a future billion dollar company.
  - nixme 8y ago
    What are you talking about? The original pitch was a black car service to fix the hailing problems of SF. It was even originally called UberCab. https://medium.com/@gc/the-beginning-of-uber-7fb17e544851 https://medium.com/@gc/the-beginning-of-uber-7fb17e544851
    - bertil 8y ago
      The original pitch was a black car service, but the legend that TK talks about, in Paris in the snowstorm of December 2008, was that he could ask “anyone there” to drive him, which is closer to carpooling. (I was at that conference: everything went wrong, but it was mostly super cold. Cars were stuck in slippery snow, so someone suggesting the idea of carpooling sounds odd, but I suspect anyone there would have loved to wait out the traffic inside a heated car.)
  - adambyrtek 8y ago
    I think you are talking about Lyft not Uber.
    - SimonPStevens 8y ago
      Yup. Looks like it was me that misremembered. My mistake.
- romwell 8y ago
  >Uber was not a surprise at all for me... When I moved to the US in 2003, the lack of something like Uber was a surprise. Not in the smartphone-app sense, of course (those didn't exist yet), but in the sense of regular-Joes-making-a-buck-giving-a-ride sense. Back in Ukraine, there was no taxicab monopoly. You could hail a ride on the street simply by raising your hand - and someone would pick you up pretty fast. Some people did it for a living, some would use the extra income on the way to/from work if you were going in the same direction (not unlikely if you are standing on a major street going to downtown, for example). The fares were unregulated and negotiated on the spot, but there was an equilibrium point for every route. (Unless you were a tourist, in which case you'll be almost surely ripped off - nothing any local would care about though). And, of course, there was no rating system, which took away the incentives for drivers to go out of their way to maintain a nice appearance. Don't like it, don't take the ride; the next car is will stop by a minute later for you, the next passenger will be around the corner for the driver. Other than the lack of ratings and fixed pricing, this worked like Uber works now in other aspects. What might be surprising is that central pricing and ratings really don't make ridesharing much different from what I described. It made the system more accepted in the US, but the end result is pretty much the same: I can hail a ride anywhere from people I don't know. The system stabilizes at a price point and expected level of service. And there's a remarkable similarity in the downsides of this system. My father made some money giving rides back in Ukraine between jobs, and while the short-term revenue looked great (compared to average monthly salaries), so much of it went into gas and maintenance that the whole gig was hardly worth it - and it took more time than a job. This is what Uber drivers are discovering themselves right now. The ones who took out loans for their shiny cars are especially screwed.
  - reaperducer 8y ago
    >Not in the smartphone-app sense, of course (those didn't exist yet), but in the sense of regular-Joes-making-a-buck-giving-a-ride sense. These existed nationwide in the United States in the early days of the 20th century, until about WWII. In many cities they were called "jitneys." Some were organized enough to operate as simple, private, anonymous bus companies with fixed (but flexible) routes. They started disappearing after WWII when most people outside the urban cores got a car, and municipal governments started taking over public transit. These still exist in some places, but are mostly in ethnic minority communities and spread by word-of-mouth. (I know first-hand because I got hit head-on by one full of schoolchildren in the late 90's.)
- volkl48 8y ago
  AirBnB is also less of a stretch because there were already pretty successful attempts paving the way for it. I was using VRBO a decade ago for vacations. AirBnB is more distinguished by a slick UI than business model innovation.
hiccuphippo 8y ago
I've never taken an Uber in the original sense of car pooling. It's always been as a cab.
scarface74 8y ago
Uber is still not a successful business model. It’s losing millions of dollars a quarter. Once they start charging enough not to have to subsidize rides and they can turn a profit and people still use them, then it can be called a success. We still don’t know how price sensitive the average Uber customer is.
- tigershark 8y ago
  If I’m not mistaken in mature markets, like US, they are actually profitable. They lose money (a lot of it) to expand in new markets.

jandrese 8y ago

You never take taxis? Airbnb is even less of a stretch since B&Bs were the original hotel. Uber was not a surprise at all for me because I'd been complaining about the bloated and horrible taxicab system for many years. It was a market that was crying out for disruption. I remember in 2008 my local taxicab company had exactly two ways to hail a cab: phone or fax. They might or might not show up at the appointed time, and they'd certainly never send you any kind of updates. It cost upwards of $5 to step into the cab, and after that there were fees out the wazoo (per 1/6th mile fee, per 45 seconds fee, fee for having a bag, a fuel surcharge, a license surcharge, a regulatory recovery surcharge, and a couple others I forget). The cabs might have credit card readers but they were always broken so it was cash only. Drivers took weirdly roundabout backroads paths and always claimed it was fastest if you asked them about it, even though I knew the highway was not busy at 4am. Every single thing about the experience sucked. When they started crying later that Uber was killing their business my response was "good".

SimonPStevens 8y ago
Except Uber didn't start as a taxi replacement company. If you only remember it as a taxi company it was already after it had started to become successful. It was initially a carpooling app. The original pitch was that regular drivers would just drive to their own intended location and have an ability to see people on route who wanted to go the same way. Much harder to pick that idea out as a future billion dollar company.
- nixme 8y ago
  What are you talking about? The original pitch was a black car service to fix the hailing problems of SF. It was even originally called UberCab. https://medium.com/@gc/the-beginning-of-uber-7fb17e544851 https://medium.com/@gc/the-beginning-of-uber-7fb17e544851
  - bertil 8y ago
    The original pitch was a black car service, but the legend that TK talks about, in Paris in the snowstorm of December 2008, was that he could ask “anyone there” to drive him, which is closer to carpooling. (I was at that conference: everything went wrong, but it was mostly super cold. Cars were stuck in slippery snow, so someone suggesting the idea of carpooling sounds odd, but I suspect anyone there would have loved to wait out the traffic inside a heated car.)
- adambyrtek 8y ago
  I think you are talking about Lyft not Uber.
  - SimonPStevens 8y ago
    Yup. Looks like it was me that misremembered. My mistake.
romwell 8y ago
>Uber was not a surprise at all for me... When I moved to the US in 2003, the lack of something like Uber was a surprise. Not in the smartphone-app sense, of course (those didn't exist yet), but in the sense of regular-Joes-making-a-buck-giving-a-ride sense. Back in Ukraine, there was no taxicab monopoly. You could hail a ride on the street simply by raising your hand - and someone would pick you up pretty fast. Some people did it for a living, some would use the extra income on the way to/from work if you were going in the same direction (not unlikely if you are standing on a major street going to downtown, for example). The fares were unregulated and negotiated on the spot, but there was an equilibrium point for every route. (Unless you were a tourist, in which case you'll be almost surely ripped off - nothing any local would care about though). And, of course, there was no rating system, which took away the incentives for drivers to go out of their way to maintain a nice appearance. Don't like it, don't take the ride; the next car is will stop by a minute later for you, the next passenger will be around the corner for the driver. Other than the lack of ratings and fixed pricing, this worked like Uber works now in other aspects. What might be surprising is that central pricing and ratings really don't make ridesharing much different from what I described. It made the system more accepted in the US, but the end result is pretty much the same: I can hail a ride anywhere from people I don't know. The system stabilizes at a price point and expected level of service. And there's a remarkable similarity in the downsides of this system. My father made some money giving rides back in Ukraine between jobs, and while the short-term revenue looked great (compared to average monthly salaries), so much of it went into gas and maintenance that the whole gig was hardly worth it - and it took more time than a job. This is what Uber drivers are discovering themselves right now. The ones who took out loans for their shiny cars are especially screwed.
- reaperducer 8y ago
  >Not in the smartphone-app sense, of course (those didn't exist yet), but in the sense of regular-Joes-making-a-buck-giving-a-ride sense. These existed nationwide in the United States in the early days of the 20th century, until about WWII. In many cities they were called "jitneys." Some were organized enough to operate as simple, private, anonymous bus companies with fixed (but flexible) routes. They started disappearing after WWII when most people outside the urban cores got a car, and municipal governments started taking over public transit. These still exist in some places, but are mostly in ethnic minority communities and spread by word-of-mouth. (I know first-hand because I got hit head-on by one full of schoolchildren in the late 90's.)
volkl48 8y ago
AirBnB is also less of a stretch because there were already pretty successful attempts paving the way for it. I was using VRBO a decade ago for vacations. AirBnB is more distinguished by a slick UI than business model innovation.

hiccuphippo 8y ago

I've never taken an Uber in the original sense of car pooling. It's always been as a cab.

scarface74 8y ago

Uber is still not a successful business model. It’s losing millions of dollars a quarter. Once they start charging enough not to have to subsidize rides and they can turn a profit and people still use them, then it can be called a success. We still don’t know how price sensitive the average Uber customer is.

tigershark 8y ago
If I’m not mistaken in mature markets, like US, they are actually profitable. They lose money (a lot of it) to expand in new markets.