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Uber’s IPO means higher fares for rides

latimes.com

61–70 of 88 posts

Re: Uber’s IPO means higher fares for rides

#61
post #40
post #27

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.

I think you overestimate how rational drivers are.

Re: Uber’s IPO means higher fares for rides

#62
post #27

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.

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

#63
post #62

Earlier 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.

True, though that hasn't been my experience in SF. I usually see most cars with both Lyft and Uber stickers, and I'm relaying what each driver I've spoken with has told me. Admittedly it's a small sample size.

Re: Uber’s IPO means higher fares for rides

#64
post #51
post #36

Earlier 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.

That is absolutely a known risk of investing in anything other than very low-risk investments (and index funds I guess?).

Re: Uber’s IPO means higher fares for rides

#65

In 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…

I'm in Bangkok right now and they have Grab. The Grab price is over-priced by 10-30% compared to what a metered taxi will cost.

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

#66
post #47

Earlier 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.

I always use fake data for services like Uber.

Re: Uber’s IPO means higher fares for rides

#67
post #60

Earlier 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.

Not just that - you also have to tell drivers you even exist in the first place, and that level of marketing is not cheap.

Re: Uber’s IPO means higher fares for rides

#68
post #50
post #17

Earlier 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?

Uber does not, iOS apps are sandboxed.

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

#69

In 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.

I've been using MyTaxi app in Germany, and it seems to provide the same major upsides (map for pickup and destination, fare approximation known beforehand, pay via app). Feels more trustworthy too.

Re: Uber’s IPO means higher fares for rides

#70
post #21

The 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.

you're kidding, right? I gave up on using jump bikes for my own travel needs long time ago, better off just walking and getting some exercise instead of hunting down some random thing in some random direction. But I try to use the bikes (the actual ride is pretty good, if you manage to get one) to show my friends around SF when they visit. In my experience, it's almost impossible to get two (or more, god forbid) bikes without spending up to an hour dragging through the dirties parts of Tenderloin just to hunt down the thing. By the time we manage to line up two bikes, everyone is fed up and sick of shitty neighborhoods, too - easier to just uber and go where we actually need to go.
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