4 ms·

Terrible take. Rideshare apps aren’t going anywhere, because they are strictly better than regular taxis, and demand for taxis isn’t going anywhere. Maybe some

Terrible take. Rideshare apps aren’t going anywhere, because they are strictly better than regular taxis, and demand for taxis isn’t going anywhere. Maybe some individual companies might go bust, and probably rideshare prices will continue to increase towards typical taxi prices, but there’s no reason at all to think the apps are going anywhere.

Night_Thastus 3y ago
The demand for rideshare apps is enormous. It's the only thing keeping investors interested. But there's no way to make them profitable as it stands.
- AmericanChopper 3y ago
  Of course there is, once the investor subsidies go away they won’t have to compete on price so much, and prices will go up. All of the services that rideshare apps offer were highly demanded before the apps existed, and they were all delivered at more expensive prices with perfectly decent profit margins. If VC money stops funding these products, then the prices have to go up to something similar to “traditional” prices for those services, but consumers will still choose to use the apps, because the service they provide will still be substantially better than the traditional service.
  - freeone3000 3y ago
    Traditional services have gotten way better — in that, they got an app. Teo went from an obscure local taxi service to a great local taxi service, and now undercuts uber because they don’t have an insane advertising burn to subsidize.
    - AmericanChopper 3y ago
      Part of the value prop of the big rideshare apps is that you can use them basically anywhere in the world (you probably need to have 3 or 4 of them to get most of the world covered). Nobody wants to land at the airport in Toronto, figure out what the local taxi app is, download it and get yourself onboarded, and then order a cab. People just want to step out of the airport and order an Uber.
- reducesuffering 3y ago
  Uber Rides are profitable and subsidizing Uber Eats growth. Any take that "Uber will cease to exist" is farcical.
  - rafram 3y ago
    > subsidizing Uber Eats growth Ah, growth, of course. Sure, they lose money on each delivery, but they’ll make it up in volume!
    - reducesuffering 3y ago
      This is the exact same thing people, probably you included, said about Uber Rides, and they’re still saying it. It was incorrect
  - p_j_w 3y ago
    With all the fees that Uber tacks onto Uber Eats, I'm absolutely baffled that they could possibly be losing money on that service. That's just... insane.
    - Scoundreller 3y ago
      Would also add that the average e-bike-based delivery person is likely happy to accept much less per mile and time-pay. (They’re all over in Toronto)
- dontreact 3y ago
  Depends on the market. I have heard from someone who I trust deeply and knows the financials well (worked there) that Uber is profitable in certain markets. It’s very possible that they have to pull out of a lot of places, but I think the model can work in the right places
BeetleB 3y ago
> Rideshare apps aren’t going anywhere, because they are strictly better than regular taxis, and demand for taxis isn’t going anywhere. I've had poor experiences with Uber/Lyft at airports. Taxis are way better. Sometimes there's not enough luggage space in the car for my luggage, and I won't know that until after I've called them and waited a long time. If I cancel, I end up paying. (And it's not about me picking a small car - they've got a lot of their personal stuff in the trunk so the capacity is smaller). Also, plenty of rude Uber/Lyft drivers ("Hey! You were on the wrong side of the road! I could get in trouble for picking you up on the other side of the road!"). We're talking about a single lane each way road, and I went to the other side because I knew he was coming from that direction. Still, being able to call one via an app is convenient compared to taxis.
- dboreham 3y ago
  > Uber/Lyft at airports That's only because their software lacks the necessary feature (select driver based on imminent arrival at the curb, from a queue of arriving drivers). Since that feature doesn't seem hard to implement, presumably the underlying reason is regulations to do with airport pickup.
  - BeetleB 3y ago
    > Since that feature doesn't seem hard to implement, presumably the underlying reason is regulations to do with airport pickup. That's a giant leap. Yes, the wait times aspect is due to airport regulations. Not having enough luggage space is not. It's on Uber/Lyft to allow users to define things like how many suitcases they have so it shows only cars where drivers can commit to that amount of space. It's just a basic thing if you're a driver and want to serve airport arrivals (or train or bus for that matter).
- AmericanChopper 3y ago
  Well some airports prohibit rideshare all together (just like some cities or countries do), so trying to use it in places where the local authorities have intentionally made it difficult will probably always suck. But rideshare apps are incredibly valuable at airports, especially in less developed countries where getting into the wrong cab at the airport gives you about a 90% chance of getting scammed or robbed, but getting an Uber or Grab from the airport brings that down to almost 0%.

Night_Thastus 3y ago

The demand for rideshare apps is enormous. It's the only thing keeping investors interested. But there's no way to make them profitable as it stands.

AmericanChopper 3y ago
Of course there is, once the investor subsidies go away they won’t have to compete on price so much, and prices will go up. All of the services that rideshare apps offer were highly demanded before the apps existed, and they were all delivered at more expensive prices with perfectly decent profit margins. If VC money stops funding these products, then the prices have to go up to something similar to “traditional” prices for those services, but consumers will still choose to use the apps, because the service they provide will still be substantially better than the traditional service.
- freeone3000 3y ago
  Traditional services have gotten way better — in that, they got an app. Teo went from an obscure local taxi service to a great local taxi service, and now undercuts uber because they don’t have an insane advertising burn to subsidize.
  - AmericanChopper 3y ago
    Part of the value prop of the big rideshare apps is that you can use them basically anywhere in the world (you probably need to have 3 or 4 of them to get most of the world covered). Nobody wants to land at the airport in Toronto, figure out what the local taxi app is, download it and get yourself onboarded, and then order a cab. People just want to step out of the airport and order an Uber.
reducesuffering 3y ago
Uber Rides are profitable and subsidizing Uber Eats growth. Any take that "Uber will cease to exist" is farcical.
- rafram 3y ago
  > subsidizing Uber Eats growth Ah, growth, of course. Sure, they lose money on each delivery, but they’ll make it up in volume!
  - reducesuffering 3y ago
    This is the exact same thing people, probably you included, said about Uber Rides, and they’re still saying it. It was incorrect
- p_j_w 3y ago
  With all the fees that Uber tacks onto Uber Eats, I'm absolutely baffled that they could possibly be losing money on that service. That's just... insane.
  - Scoundreller 3y ago
    Would also add that the average e-bike-based delivery person is likely happy to accept much less per mile and time-pay. (They’re all over in Toronto)
dontreact 3y ago
Depends on the market. I have heard from someone who I trust deeply and knows the financials well (worked there) that Uber is profitable in certain markets. It’s very possible that they have to pull out of a lot of places, but I think the model can work in the right places

BeetleB 3y ago

> Rideshare apps aren’t going anywhere, because they are strictly better than regular taxis, and demand for taxis isn’t going anywhere. I've had poor experiences with Uber/Lyft at airports. Taxis are way better. Sometimes there's not enough luggage space in the car for my luggage, and I won't know that until after I've called them and waited a long time. If I cancel, I end up paying. (And it's not about me picking a small car - they've got a lot of their personal stuff in the trunk so the capacity is smaller). Also, plenty of rude Uber/Lyft drivers ("Hey! You were on the wrong side of the road! I could get in trouble for picking you up on the other side of the road!"). We're talking about a single lane each way road, and I went to the other side because I knew he was coming from that direction. Still, being able to call one via an app is convenient compared to taxis.

dboreham 3y ago
> Uber/Lyft at airports That's only because their software lacks the necessary feature (select driver based on imminent arrival at the curb, from a queue of arriving drivers). Since that feature doesn't seem hard to implement, presumably the underlying reason is regulations to do with airport pickup.
- BeetleB 3y ago
  > Since that feature doesn't seem hard to implement, presumably the underlying reason is regulations to do with airport pickup. That's a giant leap. Yes, the wait times aspect is due to airport regulations. Not having enough luggage space is not. It's on Uber/Lyft to allow users to define things like how many suitcases they have so it shows only cars where drivers can commit to that amount of space. It's just a basic thing if you're a driver and want to serve airport arrivals (or train or bus for that matter).
AmericanChopper 3y ago
Well some airports prohibit rideshare all together (just like some cities or countries do), so trying to use it in places where the local authorities have intentionally made it difficult will probably always suck. But rideshare apps are incredibly valuable at airports, especially in less developed countries where getting into the wrong cab at the airport gives you about a 90% chance of getting scammed or robbed, but getting an Uber or Grab from the airport brings that down to almost 0%.