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How? Uber loses money on every ride, doesn't it? Are you going to get VC money for a co-op?
by cafard 6y ago
How? Uber loses money on every ride, doesn't it? Are you going to get VC money for a co-op?
- mattkrause 6y agoI think they mean a 25¢ fee to the platform for matchmaking; you’d pay the driver too.
- tehwebguy 6y agocafard is saying that it’s not likely possible to get users without subsidizing each ride
- valuearb 6y agoUber makes money on rides in nature markets, it’s losses are from investing in new markets and businesses.
- mikem170 6y agoSome of the ride cost is VC subsidy. Some of the ride expense is Uber corporate (thousands of programmers, pay for officers, managers, building rent, etc). Do we know which is greater? Maybe there is room for an app with low overhead to compete.
- wool_gather 6y agoI'm supportive of the co-op idea, but my bet would be that the drivers don't matter nearly as much as users. So unless it can compete on a UX level with the convenience and branding of the VC-backed options it's not going to succeed.
- Hammershaft 6y agoI agree, although the flipside is cheaper rides that can be marketed as going to local drivers.
- Kalium 6y agoWith any app, your driver is going to be local enough to be picking you up.
- Hammershaft 6y agoA larger cut is retained by a distant middleman.
- stu2b50 6y agoDepends on the market. Uber makes money on rides in established urban areas, ie look at the NY or LA numbers.