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If taxis got bigger it would cut into personal sales, yes, but it creates a new revenue stream whereby they take a cut of every ride. The price anchor in that n
by jfoster 2y ago
If taxis got bigger it would cut into personal sales, yes, but it creates a new revenue stream whereby they take a cut of every ride. The price anchor in that new revenue stream traditionally accounts for the cost of having a human driver, which a self-driving car doesn't need, so they would likely be off to a really good start in terms of profitability. Especially considering they have already paid for a significant amount of the R&D.
- bobthepanda 2y agothat's a sunk cost fallacy and that assumes that the software spending on Cruise is salvageable. They never really restarted Cruise robotaxis after suspending the testing last year.
- jfoster 2y agoThat's true. Their technology direction is probably not efficient. You can see something similar happening with Waymo. If it were actually scalable & in sight of a promising ROI, why wouldn't Alphabet fund it themselves rather than bringing in outside investment?