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FWIW, I don’t think self driving cars would have made them a good business. Once you no longer need drivers, all you’re doing is deploying a fleet of automobile
by toasterlovin 7y ago
FWIW, I don’t think self driving cars would have made them a good business. Once you no longer need drivers, all you’re doing is deploying a fleet of automobiles. We already have companies that do this: taxi services and auto rental companies. They’re shitty, low margin businesses with tons of competition. The promise of Uber was being a monopoly because they were first mover on a market with network effects. Much like eBay. But self driving cars remove the network effect inherent in needing to attract both drivers and riders.
- _bxg1 7y agoThey already have an app for hailing cars, viewing their status on a map, etc. which tons of people already have on their phones, as well as an extremely recognizable brand and lots of data-center investment to back it all. Competitors would pop up, but don't underestimate the value of those things.
- toasterlovin 7y agoFWIW, they don’t control the default map apps for the two major phone platforms. Competitors will be desperate to fork over money to Apple or Google to get placement when people are planning routes. And Apple and Google may also be in the ride sharing game at that point, since they’re both currently working on self driving cars.
- kickopotomus 7y agoI'm pretty positive that is Google's end goal. They even had (have?) and integration with Lyft/Uber at one point so that you could hail a ride from within the Google Maps app. My bet is that it was meant to be a proof-of-concept to see how hard it would be just to replace them with their own service.
- toasterlovin 7y agoYeah, Apple has this feature, too.
- i_cant_speel 7y agoYou aren't going to rent a car to take a fifteen minute trip across town, so that isn't really comparable. And yes, they would be a taxi service. But they would be a taxi service with lower costs since they don't need pay for a driver.
- empath75 7y agoyou would if it drove itself.
- briankelly 7y agoUntil the other taxi services have an autonomous fleet. Uber never had a unique position here. Not too mention these cars are not just around the corner.
- toasterlovin 7y agoRight, but they wouldn't have a monopoly on being a taxi service. And literally every other business where you're managing a fleet of equipment is not a particularly special business. Why would Uber be any different?
- mikeg8 7y ago>... in needing to attract both drivers and riders. The are not trying to attract drivers at all, they are trying to eliminate them. The drivers portion of the fair is the largest cost so removing drivers increases margins overall. Self driving cars are the only way this is a good business - which is why there is so much competition from many of the smartest innovators/investors in the world.