4 ms·
Uber is cheap because they are subsidizing your fare with investment dollars at an unsustainable level. They are selling $2 for the price of $1. The ride sharin
by bart_spoon 7y ago
Uber is cheap because they are subsidizing your fare with investment dollars at an unsustainable level. They are selling $2 for the price of $1. The ride sharing economy is convenient, but I can't see it lasting for much longer. At least not without losing some of what makes it so convenient, like low prices.
- harel 7y agoWhat makes them convenient is availability and driver mass. Prices are an added bonus but not the main USP. Not to me anyway.
- aguyfromnb 7y ago>Prices are an added bonus but not the main USP. Not to me anyway. But it's all related. There is more availability because both drivers and customers are being subsidized. At the end of the day, a car costs so much to operate and maintain, and a person requires so much economic profit to make driving around worth their while. No "hacks" around that fact.
- marcosdumay 7y agoSomehow here in Brazil there was a startup (recently sold) that had cheaper fares, paid more to drivers, and was still lucrative. I imagine Uber is incredibly badly managed.
- jimmaswell 7y agoI don't get this. Supplying a ride sharing app, especially just supporting one, should have very minimal overhead. If Uber didn't have other interests like self driving research, they could be distilled down to a small startup's worth of support devs and one manager and just let the app make money. A revenue of 3 billion would be way more than sustainable being split among a company size of 10 or even 30. If anything, if forced by circumstances they could just cut all the fat and massively, massively downsize while staying the same from the consumer's perspective. VC's know this so growing for now and investing in R&D is fine when at a moment's notice a company could be reduced to 30 people and just keep supporting an app.