Bill Could Destroy Uber's Unsustainable Business Model • Hacker News Board

Re: Bill Could Destroy Uber's Unsustainable Business Model

#11

Post by jacques_chester » Sat, Jul 20, 2019, 4:45 PM UTC

skinnymuch wrote: post #8

willio58 wrote: post #3

Eh.. just charge people more money to use Uber. Yeah they would lose a lot of regular riders but will those people really go back to using cabs? Uber could double their prices and I would still use them over taxis 9/10 times.

If Lyft and Uber both raise their prices by say 50% around the same time. And they can get away with however that would be achieved then yeah I agree with you completely. They’d def lose riders. But not close to 50% of rides. Not even half that. For myself, I’d ride a bit less. Probably not do 1 in 4 rides I’d normally do. But when I need a ride back from the train station or I’m late to something and public transit…

> If Lyft and Uber both raise their prices by say 50% around the same time.

And there's the rub. They're playing investor-bonfire chicken.

More strictly: it's prisoner's dilemma. Defection is the dominant strategy.

Re: Bill Could Destroy Uber's Unsustainable Business Model

#12

Post by icebraining » Sat, Jul 20, 2019, 4:47 PM UTC

What will it do to the taxi business model? In the US, traditionally, cab drivers are classified as contractors too, and they've also been suing companies in the last few years regarding this issue.

Re: Bill Could Destroy Uber's Unsustainable Business Model

#13

Post by jakelazaroff » Sat, Jul 20, 2019, 4:48 PM UTC

vikramkr wrote: post #10

But they aren't employees. I still dont understand why people who get to work on demand whenever they want without a boss to report to or set hours are employees. The company doesn't get the benefits of having employees (schedule them in for rush hours, reliable controllable labor base), so why should drivers get the perks of becoming an employee without having to give up their flexibility and everything?

But are they truly contractors? They don't set the price for their own labor and can be fired for declining too many rides.

Re: Bill Could Destroy Uber's Unsustainable Business Model

#14

Post by pyrophane » Sat, Jul 20, 2019, 4:52 PM UTC

webwielder2 wrote: post #2

How about people get guaranteed certain rights and services by the government so we don’t have to worry about whether someone’s an employee or contractor?

There is still the question of compensations. There are limits to how little you can pay an employee, and that will still be an issue in a situation like this unless, perhaps, we have something like universal basic income.

Re: Bill Could Destroy Uber's Unsustainable Business Model

#15

Post by lpa22 » Sat, Jul 20, 2019, 4:57 PM UTC

empath75 wrote: post #7

willio58 wrote: post #3

Eh.. just charge people more money to use Uber. Yeah they would lose a lot of regular riders but will those people really go back to using cabs? Uber could double their prices and I would still use them over taxis 9/10 times.

Half the time in New York you get a cab with their meter off when you call Uber.

I use taxis in Manhattan over Uber due to them being even more on demand and convenient, for the same price

Re: Bill Could Destroy Uber's Unsustainable Business Model

#16

Post by [deleted] » Sat, Jul 20, 2019, 4:58 PM UTC

[deleted]

Re: Bill Could Destroy Uber's Unsustainable Business Model

#17

Post by tonmoy » Sat, Jul 20, 2019, 4:59 PM UTC

skinnymuch wrote: post #9

Waterluvian wrote: post #5

Earlier quoted context omitted.

Where I live, Uber managed to force taxi services to evolve and embrace technology like mobile apps and GPS and flat estimates. And now the local taxi is much better than Uber, in my opinion. I'm not sure what the free market textbook says about this but as a consumer it's a huge win.

Where do you live? This seems like an anomaly.

I have seen similar things happening in a lot of countries outside of US. So maybe not as anomalous as you think

Re: Bill Could Destroy Uber's Unsustainable Business Model

#18

Post by master-litty » Sat, Jul 20, 2019, 4:59 PM UTC

skinnymuch wrote: post #9

Waterluvian wrote: post #5

Earlier quoted context omitted.

Where I live, Uber managed to force taxi services to evolve and embrace technology like mobile apps and GPS and flat estimates. And now the local taxi is much better than Uber, in my opinion. I'm not sure what the free market textbook says about this but as a consumer it's a huge win.

Where do you live? This seems like an anomaly.

I forget the name of the company but four years ago, I was offered an interview at a taxi company to help make an app for hailing rides.

The job was in SF but they operated all over the US.

Re: Bill Could Destroy Uber's Unsustainable Business Model

#19

Post by CydeWeys » Sat, Jul 20, 2019, 5:00 PM UTC

empath75 wrote: post #7

willio58 wrote: post #3

Eh.. just charge people more money to use Uber. Yeah they would lose a lot of regular riders but will those people really go back to using cabs? Uber could double their prices and I would still use them over taxis 9/10 times.

Half the time in New York you get a cab with their meter off when you call Uber.

What?! I live in NYC, have taken dozens of Ubers/Lyfts to a variety of places, and have literally never once seen this.

Re: Bill Could Destroy Uber's Unsustainable Business Model

#20

Post by paulsutter » Sat, Jul 20, 2019, 5:01 PM UTC

Im baffled to imagine drivers really want to lose all those tax deductions - and get paid less - to be employees rather than contractors. Being an employee is just about the worst possible tax situation.

A better change in the law would be the opposite. Give the benefits of being a contractor to all folks currently forced to be categorized as employees. And fix healthcare so it’s not tied to your job.