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Is that true? There's a ton of overhead required to have any presence in a city (all of the fueling/cleaning/repairing/storing/etc depots) that you need to amor
by mechagodzilla 2y ago
Is that true? There's a ton of overhead required to have any presence in a city (all of the fueling/cleaning/repairing/storing/etc depots) that you need to amortize over lots of cars. If they can keep the cars busy, I think they'd much rather have 5,000 cars in one city than 500 cars in 10 cities (with 10x the overhead).
- lern_too_spel 2y agoThey have a big upfront cost to add a new city, but once they add it, their marginal revenue per car will be higher there (partly because they can be sure to keep those cars busy and partly because they can charge a higher premium). They have to prepare the infrastructure anyway in all the cities to get to the scale they want to get to, but each new car built is going to be sent to the least scaled city so far.
- senordevnyc 2y agoDoes that make sense from a consumer brand perspective though? If everytime I check Waymo there's no capacity or it's super expensive, pretty soon I won't even bother checking it.
- lern_too_spel 2y agoIt's worked so far. People are willing to pay the premium.