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"Will they be able to compete on price?" Sounds like the current low prices are the result of cutting corners and not having adequate insurance. Which makes me
by rmc 12y ago
"Will they be able to compete on price?"
Sounds like the current low prices are the result of cutting corners and not having adequate insurance. Which makes me side against Uber here.
- prostoalex 12y agoYeah http://talkingpointsmemo.com/edblog/understanding-the-economics-of-uber http://talkingpointsmemo.com/edblog/understanding-the-econom... There's no economy of scale that's typical of technology companies here - Uber drivers are not able to buy cars cheaper in bulk, get a better deal on gas, or buy commercial insurance at much cheaper rates. Hertz or Avis have a better cost structure than Uber. The price advantage comes from skirting the regulation on taxi medallions (only relevant for a few large markets like NYC) and skirting commercial insurance requirements.