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> The prices in the local taxi market didn't go down a few % it got fractionally cheaper - it went from being barely affordable and only used in exceptional cas

> The prices in the local taxi market didn't go down a few % it got fractionally cheaper - it went from being barely affordable and only used in exceptional cases to a substitute for car ownership and not having to think about using it (depending on your daily commute). That's because they loose money with every ride? I mean it really can't be cheap to have your have your personal driver for your daily commute.

rubber_duck 6y ago
The thing is there are other taxi services locally that are competing with Uber at similar prices. Even if prices went up 30% it would still be in the "I don't have to think about it" territory.
- chefkoch 6y ago
  I'm not sure how this is possible as afaik taxi fares are heavy regulated. Just because Uber subsedises rides no city council will change the taxi fares. https://www1.nyc.gov/site/tlc/passengers/taxi-fare.page https://www1.nyc.gov/site/tlc/passengers/taxi-fare.page
  - rubber_duck 6y ago
    Oh I should mention I'm in Europe and have no idea about how Uber works in the US.
  - andrewl-hn 6y ago
    "Taxi" taxis are not the only types of services like this. Depending on where in the world we're talking there have been other companies - often locally run or covering a few neighboring countries that use the same model Uber is using. Or offering similar ridesharing options via a phone since 1980s or 1990s. In my area (Eastern Europe) Uber matched the prices of other unofficial "taxi" services that existed for 40+ years. However, the convenience of having an app, not dealing with cash, ability to see your driver getting to meet you, etc. boosted the number of taxi riders tenfold. Many other ridesharing companies are offering apps these days, too. So even when Uber goes bust, the industry won't revert back to cash payments and phone numbers. So like the grandparent said it's a net positive for consumers.
  - KptMarchewa 6y ago
    Do you know NYC and SF are not the only places where people live?
    - chefkoch 6y ago
      Yeah, i'm from germany but most people here would have trouble reading german taxi regulation.
  - vidarh 6y ago
    A lot of places there is a sharp licensing distinction between requirements for those who want to be able to pick up unscheduled passengers on the street or taxi ranks, vs. those who only pick up on request or from their own locations. Overall the latter category tends to face far fewer limitations and be a lot more competitive.
edouard-harris 6y ago
They do not lose money with every ride, at least according to their most recent investor presentation [1]. Their rides segment is already profitable - albeit on an EBITDA basis, but with decent and growing margins. [1] https://s23.q4cdn.com/407969754/files/doc_financials/2019/sr/InvestorPresentation_2020_Feb13.pdf https://s23.q4cdn.com/407969754/files/doc_financials/2019/sr... (slide 15)

rubber_duck 6y ago

The thing is there are other taxi services locally that are competing with Uber at similar prices. Even if prices went up 30% it would still be in the "I don't have to think about it" territory.

chefkoch 6y ago
I'm not sure how this is possible as afaik taxi fares are heavy regulated. Just because Uber subsedises rides no city council will change the taxi fares. https://www1.nyc.gov/site/tlc/passengers/taxi-fare.page https://www1.nyc.gov/site/tlc/passengers/taxi-fare.page
- rubber_duck 6y ago
  Oh I should mention I'm in Europe and have no idea about how Uber works in the US.
- andrewl-hn 6y ago
  "Taxi" taxis are not the only types of services like this. Depending on where in the world we're talking there have been other companies - often locally run or covering a few neighboring countries that use the same model Uber is using. Or offering similar ridesharing options via a phone since 1980s or 1990s. In my area (Eastern Europe) Uber matched the prices of other unofficial "taxi" services that existed for 40+ years. However, the convenience of having an app, not dealing with cash, ability to see your driver getting to meet you, etc. boosted the number of taxi riders tenfold. Many other ridesharing companies are offering apps these days, too. So even when Uber goes bust, the industry won't revert back to cash payments and phone numbers. So like the grandparent said it's a net positive for consumers.
- KptMarchewa 6y ago
  Do you know NYC and SF are not the only places where people live?
  - chefkoch 6y ago
    Yeah, i'm from germany but most people here would have trouble reading german taxi regulation.
- vidarh 6y ago
  A lot of places there is a sharp licensing distinction between requirements for those who want to be able to pick up unscheduled passengers on the street or taxi ranks, vs. those who only pick up on request or from their own locations. Overall the latter category tends to face far fewer limitations and be a lot more competitive.

edouard-harris 6y ago

They do not lose money with every ride, at least according to their most recent investor presentation [1]. Their rides segment is already profitable - albeit on an EBITDA basis, but with decent and growing margins. [1] https://s23.q4cdn.com/407969754/files/doc_financials/2019/sr/InvestorPresentation_2020_Feb13.pdf https://s23.q4cdn.com/407969754/files/doc_financials/2019/sr... (slide 15)