Earlier quoted context omitted.
There is a barrier to entry: building a network of drivers. If there is no drives, nobody will buy a ride over your app, drivers will then not install it because nobody is buying rides.
I think drivers would jump simply to pursue a market realm with far fewer suppliers (initially, at least), knowing they can go back anytime, or toggle between sites in response to incentives.
Uber’s IPO means higher fares for rides
61–70 of 88 posts
Re: Uber’s IPO means higher fares for rides
#62Earlier quoted context omitted.
There is a barrier to entry: building a network of drivers. If there is no drives, nobody will buy a ride over your app, drivers will then not install it because nobody is buying rides.
Every driver drives for every service in each city. There's no cost to them doing so. The only thing actually motivating them to stick to one service or another is Uber and Lyft have quota-based payouts promotions. Make your quota, get a bonus. Once they do, though, they're back at timesharing.
Re: Uber’s IPO means higher fares for rides
#63Earlier quoted context omitted.
Every driver drives for every service in each city. There's no cost to them doing so. The only thing actually motivating them to stick to one service or another is Uber and Lyft have quota-based payouts promotions. Make your quota, get a bonus. Once they do, though, they're back at timesharing.
There is the cost of signing up to each service and entering bank details for payout. Additionally drivers aren't rational market players with perfect information. The quota alone could be enough emotional incentive for a driver to stick to only 2-3 apps.
Re: Uber’s IPO means higher fares for rides
#64Earlier quoted context omitted.
Investors presumably know the risks involved. On the other hand, many drivers are inexperienced and do not know the full cost of driving for Uber (vehicle depreciation and increased liability).
> Investors presumably know the risks involved. Except for working stiffs who are going to end up with Uber stock stuffed in their retirement accounts by unscrupulous portfolio managers.
Re: Uber’s IPO means higher fares for rides
#65In the end you will have a service costing the same as a regular Taxi but without all the benefits of them being licensed. Taxi licensing may be screwed up and unfair in the US but in many parts of the world it works well.
I'm fine with Uber costing the same as a regular taxi. Riding in a taxi is a garbage experience compared to uber. Drivers making excuses not to take you after learning your destination, rude drivers, drivers who have no clue how to navigate, drivers who pretend the card machine is broken, or try to take you on winding routes to increase the fare. Despite all the supposed downsides of ridesharing, it continues to be i…
But I'll take Grab anyway. The taxi experience is really garbage. It doesn't help that there is a language issue too.
Re: Uber’s IPO means higher fares for rides
#66Earlier quoted context omitted.
I'm fine with Uber costing the same as a regular taxi. Riding in a taxi is a garbage experience compared to uber. Drivers making excuses not to take you after learning your destination, rude drivers, drivers who have no clue how to navigate, drivers who pretend the card machine is broken, or try to take you on winding routes to increase the fare. Despite all the supposed downsides of ridesharing, it continues to be i…
I don't have to relinquish all my identity and GPS location to ride a Taxi though.
Re: Uber’s IPO means higher fares for rides
#67Earlier quoted context omitted.
Why wouldn't drivers install it, when it costs them nothing? And then if they're at the end of an uber ride and a notification for the other service pops up, they can take that.
Installing an app and entering your bank details for payouts is quite a burden on the driver. Not permanent and not physically but emotionally.
Re: Uber’s IPO means higher fares for rides
#68Earlier quoted context omitted.
Because on iOS they can't detect apps, as far as I know.
If Uber has access to file storage, can't it look for file names specific to Lyft?
Further more, if you use `canOpenURL` trick to check for anything but trying to fallback when you're actually trying to open the url/app, they will flag you during the review.
Re: Uber’s IPO means higher fares for rides
#69In the end you will have a service costing the same as a regular Taxi but without all the benefits of them being licensed. Taxi licensing may be screwed up and unfair in the US but in many parts of the world it works well.
If Uber cost the same as a taxi, I would still use Uber. They're much quicker to show up, have an app (vs. calling a dispatch center and trying to explain where you are), and the quality has been much better than taxis in my experience. Taxis have the "broken" card machines, the ads playing on the little screen, and the 30 minute wait for a ride if you're not in a high-density urban center.
Re: Uber’s IPO means higher fares for rides
#70The last time I had this feeling was when shorting groupon. The emperor has no clothes, I can't see how UBER ends up being materially different from a donut.
The only thing I can see being successful for them is JUMP. It's an awesome service, there's no better way to get around San Francisco -- and Seattle! I assume it's as effective in other cities too. On the other hand scaling and acceptance seem pretty far off.