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Driverless cars is exactly the play. Once driverless cars arrive, their margins will jump from 20% to something like 50-80% overnight.
by mchusma 12y ago
Driverless cars is exactly the play. Once driverless cars arrive, their margins will jump from 20% to something like 50-80% overnight.
- krapht 12y agoI sincerely doubt that. I believe once driverless cars come around, there will be nothing to differentiate Uber from any other app from an established fleet management company like Avis, Hertz, or Enterprise.
- aetherson 12y agoIf they started to have a 50-80% unit margin, why wouldn't people compete with them? Why wouldn't, say, Amazon compete with them? It doesn't sound like a tough business to get into for Amazon -- just buy a bunch of driverless cars. And Amazon excels at competing at close to 0% margins -- why would we imagine that Uber would be successful at competing against Amazon in this scenario?
- SilasX 12y agoTheir costs would fall by that magnitude, sure. But so would everyone else's, so that doesn't immediately translate into higher margins. I think it would benefit Uber more than rent-a-cars and other such services because of their greater effectiveness at finding rides to match with unused (driverless) cars, but that figure overstates it.