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> Uber's tech is simple and easily replicable. The moment they raise their prices, they loose their market share. There is no network effect in this market. I

by yoz-y 7y ago

> Uber's tech is simple and easily replicable. The moment they raise their prices, they loose their market share. There is no network effect in this market. I disagree that there is no network effect. When one travels to another country it is much easier to use Uber rather than to find what local brew of 'carpooling' service is available, create an account, put in credit card info etc. Their tech is easily replicable but their global presence is not.

roenxi 7y ago
That isn't so much a network effect as it is burning money on 6 continents. If Uber isn't the most cost effective solution at home there isn't much incentive to use it abroad either. I've been in lots of places - pre Uber - where I didn't even speak the local language. Even then finding a taxi was not taxing. If Uber can't make a profit on local traffic it is going to be a mighty feat if they make money off non-local traffic.
- yoz-y 7y ago
  I agree that they need to be profitable in order for this to matter. If they were, it would help with local traffic too as people would still prefer to only have one app installed. In my city there is a concurrent company that pays taxes locally and almost all of the drivers work for both Uber and them. I still sometimes order rides through Uber because of habit.
- Scoundreller 7y ago
  Doesn’t really match my experience at all visiting a city without Uber (Barcelona). Driver took advantage of their complicated fare system to add supplement charges that didn’t apply: charged us the baggage supplement for our backpacks that we carried in the car, and charged us a supplement for going to the train station, which should only apply from the train station. The local taxi authority requires us to complain by post with an original receipt. The postage costs of sending that with tracking defeats the purpose. Most people wouldn’t even realize they were overcharged, after all, we paid what was on the meter. And issuing receipts is only by request. We don’t have enough data to determine if the driver was excellently skilled or suicidal. Meanwhile with Uber, you get a fancy receipt emailed to you listing route/charges, a sensible (if unregulated) complaints process, and ratings from other riders.
nradov 7y ago
People who frequently travel to a bunch of different countries are a tiny niche market. The vast majority of ride sharing customers take few or zero international trips per year.
hamilyon2 7y ago
I have had opposite experience in Japan
m463 7y ago
Network effect is more than none, but less than all. Lyft is also around, and it seems that there is very little friction for both drivers and riders to choose/arbitrage.

by yoz-y 7y ago

roenxi 7y ago

That isn't so much a network effect as it is burning money on 6 continents. If Uber isn't the most cost effective solution at home there isn't much incentive to use it abroad either. I've been in lots of places - pre Uber - where I didn't even speak the local language. Even then finding a taxi was not taxing. If Uber can't make a profit on local traffic it is going to be a mighty feat if they make money off non-local traffic.

yoz-y 7y ago
I agree that they need to be profitable in order for this to matter. If they were, it would help with local traffic too as people would still prefer to only have one app installed. In my city there is a concurrent company that pays taxes locally and almost all of the drivers work for both Uber and them. I still sometimes order rides through Uber because of habit.
Scoundreller 7y ago
Doesn’t really match my experience at all visiting a city without Uber (Barcelona). Driver took advantage of their complicated fare system to add supplement charges that didn’t apply: charged us the baggage supplement for our backpacks that we carried in the car, and charged us a supplement for going to the train station, which should only apply from the train station. The local taxi authority requires us to complain by post with an original receipt. The postage costs of sending that with tracking defeats the purpose. Most people wouldn’t even realize they were overcharged, after all, we paid what was on the meter. And issuing receipts is only by request. We don’t have enough data to determine if the driver was excellently skilled or suicidal. Meanwhile with Uber, you get a fancy receipt emailed to you listing route/charges, a sensible (if unregulated) complaints process, and ratings from other riders.

nradov 7y ago

People who frequently travel to a bunch of different countries are a tiny niche market. The vast majority of ride sharing customers take few or zero international trips per year.

hamilyon2 7y ago

I have had opposite experience in Japan

m463 7y ago

Network effect is more than none, but less than all. Lyft is also around, and it seems that there is very little friction for both drivers and riders to choose/arbitrage.