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Uber would do well because there would be a flood of people with more free time and looking to make quick cash with their cars.
by three_seagrass 7y ago
Uber would do well because there would be a flood of people with more free time and looking to make quick cash with their cars.
- benburleson 7y agoIs that good for them? Is there currently a shortage of drivers?
- three_seagrass 7y agoYes, it would be, since it gives them the freedom to drop costs (supply and demand). There doesn't need to be an existing shortage of drivers for this to be beneficial.
- nemothekid 7y ago>Is there currently a shortage of drivers? Most of the money Uber is burning is to recruit drivers. If there are more drivers around, there's less of a reason to burn $100MMs to recruit drivers.
- empath75 7y agoBut they lose money on every ride, and presumably investor money would flee towards business that actually like make a profit.
- three_seagrass 7y agoThey would be able to pay less per ride if there are more supply - i.e. available drivers with existing assets.
- actusual 7y agoThis assumes demand on the rider side is unaffected by an economic downturn, which seems like a strong assumption. Lower demand on the rider side directly impacts top-line revenue, so sure, they may get to pay drivers less, but they are also getting less revenue to pay drivers from.
- cycrutchfield 7y agoThey do not lose money on every ride. Read the earnings report
- Acrobatic_Road 7y ago...and a lot fewer people taking uber rides.
- mathattack 7y agoAnd folks who can’t afford cars.
- ghaff 7y agoI doubt that people who can't afford cars makes up a big percentage of Uber revenues. It's mostly a luxury product.