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Understanding the Economics of Uber
- prostoalex 12y agoThis is a good piece. I have seen some anecdotal evidence of unsustainability of the business model - e.g. a trip from my neck of the woods to LAX is priced as $114 on Blacklane.com, $110 on Limos.com and $149-197 for Uber Black (so that the comparison is apples-to-apples) - but was never able to articulate it into a longer-term business model problem. The car service companies do operate at lower-cost structure, and probably don't mind using Uber to fill some spare capacity, but arranging for a trip in advance via a cheap aggregator (not sure what Blacklane or Limos.com charge) will always net the consumer a discount.