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What strategies do rideshare companies plan to employ to reach profitability: increasing prices, cutting costs, etc? And what will the implications be for rider
by JMTQp8lwXL 6y ago
What strategies do rideshare companies plan to employ to reach profitability: increasing prices, cutting costs, etc? And what will the implications be for riders and employees alike.
- ghaff 6y agoMy assumption would be both. Taxi companies have way lower cost structures. They certainly don't employ lots of software engineers. And there's no reason to think that Uber should be significantly cheaper than a taxi ride. Scale buys you something but probably not a lot. (And scale has some costs too.)
- pishpash 6y agoYou underestimate what you can extract from making the market larger and more efficient, which taxis could never do. Why don't people barter instead of paying huge sums to Wall Street to intermediate?
- JMTQp8lwXL 6y agoBartering in this problem space is hard. Let me call up 5 of my closest friends in my city, to see if they want to leave their home, drive me from Point A to Point B, then go home, right now.
- ghaff 6y agoIn part, because, on an individual basis, Wall Street's skim is tiny. It's only big in aggregate.