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Taxi companies don't have thousands of software engineers to pay. In fact the entire reason why there are so many taxi companies is because there's no benefit t
by Barrin92 4y ago
Taxi companies don't have thousands of software engineers to pay. In fact the entire reason why there are so many taxi companies is because there's no benefit to scale. (same reason there's countless of very small or self-employed trucking businesses).
Transport and driving is a high competition, low margin business, similar to say the restaurant industry. Putting a smartphone app on top of that economy doesn't change that fact. (the only thing that would turn it into an actual high margin technology business is full self-driving, which is why Uber itself once considered this it's 'only path to profitability').
- Ekaros 4y agoI'm rather doubtful about whole self-driving also. At least if there is more than let's say 2 players offering products. That will also be massively capital intensive area with drive to the bottom for lowest possible costs in competing between everyone.
- carlmr 4y agoThousands of software engineers are cheap, because software scales. So if they still have a better app than the local taxis, they would still have an edge. At least in Germany the taxi apps are so crappy that you still need to call for a taxi most of the time, you then don't have a map where they know where to find you and you know where they are. Uber has that but no/few drivers in my area. I would use Uber if they had drivers, even if it was the same price as the taxis.
- chrischen 4y agoSoftware engineers are not part of the unit economics. They don’t have to get an engineer to write disposable code for each ride they serve…