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Uber, DoorDash and similar firms can’t defy the laws of capitalism after all

economist.com

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Re: Uber, DoorDash and similar firms can’t defy the laws of capitalism after all

#32

Post by bdcravens »

coldcode wrote: post #23

All of these companies may have a functional business and can stick around, but they are not worth the valuation present in their stock. Even Tesla is not worth anywhere near $1T. In the end you have to eventually earn enough to support the price (once all the Fed support goes away from the market) but none of these companies will ever make enough revenue or profit. For now unreality keeps the market high.

Tesla is profitable. The profit is propped up a bit by subsidies, but it seems strange to include the company in a discussion about service providers that are battling in a war of attrition.

Re: Uber, DoorDash and similar firms can’t defy the laws of capitalism after all

#33

Post by tempest_ »

batshit_beaver wrote: post #28
mstipetic wrote: post #18

Earlier quoted context omitted.

And previous well functioning economies get destroyed in the process

If pervious economies were so well functioning, why couldn't I easily order pretty much any food from any restaurant within a 50 mile radius with a click of a button before Uber and DoorDash came along?

There existed many companies/people who would collect whatever you wanted and bring it where ever for a fee with a phone call.

People would not be willing to pay the price however.

Re: Uber, DoorDash and similar firms can’t defy the laws of capitalism after all

#34

Post by maedla »

WitCanStain wrote: post #20
goodpoint wrote: post #11

Earlier quoted context omitted.

Capitalism should be defined by free markets, among other things. What we are seeing is an unprecedented combination of quasi-monopolies, rent-seeking, and an economy disconnected from real production of goods and services. It has been called neofeudalism.

But all that is the natural and inevitable consequence of capitalism. It's baked into the structure of the system.

Exactly. People want to go back to the thing that got us here

Re: Uber, DoorDash and similar firms can’t defy the laws of capitalism after all

#35

Post by undefuser »

moolcool wrote: post #8

This may be a hot take, but I think the gig economy is one thing which could be a pretty solid use of the blockchain. Uber/DoorDash/Lyft are all pretty simple CRUD apps at their core, and the companies themselves do very little actual work. Unfortunately, due to the Silicon Valley cult of growth, they are still either unprofitable or barely profitable while also taking a pretty massive cut away from actual workers on…

Could you please outline clearly how blockchain wil be used in your example? Like what kind of information are stored on the blockchain, how smart contracts are utilized, how do drivers and consumers interact with the system?

Re: Uber, DoorDash and similar firms can’t defy the laws of capitalism after all

#36

Post by batshit_beaver »

coldcode wrote: post #23

All of these companies may have a functional business and can stick around, but they are not worth the valuation present in their stock. Even Tesla is not worth anywhere near $1T. In the end you have to eventually earn enough to support the price (once all the Fed support goes away from the market) but none of these companies will ever make enough revenue or profit. For now unreality keeps the market high.

Tesla is totally worth 1 trillion if the dollar is worth nothing.

Re: Uber, DoorDash and similar firms can’t defy the laws of capitalism after all

#37

Post by toomuchtodo »

xyzzy21 wrote: post #30

Ultimately you can NOT "magically" negate "Last Mile Costs" in cities and towns where the Last Mile path distance is enormous. Did my MBA thesis on this subject with the benefit of 20 years of engineering experience. The numbers simply do not work unless you change how cities and residences are built, which would cost far more than you'd ever gain from solving Last Mile costs - the breakeven time is of the order of 1…

Would love to read your thesis if you’re willing to share.

Re: Uber, DoorDash and similar firms can’t defy the laws of capitalism after all

#38

Post by roystonvassey »

If there was any time to be skeptical of Uber's longevity, it is now (at least for me).

My experience is anecdotal but I visit my home country every year for a few months and I can clearly notice the declining quality of Uber's services:

1. Vehicles, on average, take at least 10-15 mins longer to get

2. Even if you find a vehicle, 60% of these rides are canceled (either by the driver because they call me and find out they don't want to go that way or they just don't move at all and I'm forced to cancel)

3. After all this, if I am lucky to get into a commute, every driver has complaints about Uber (complaints include intransparent pricing, delays in payments). Most of these drivers are completely dependent on Uber or similar services and have heavy debts that they are now unable to service.

4. Uber's app itself appears to get bloated by the day and while they do appear to make an effort collect my feedback when rides get canceled, not once have I got an impression that the feedback matters at all. Additionally, payment options are numerous but they require me to complete multiple steps to finish which puts me off using it (not Uber's fault I suppose but is part of the riding experience).

Given that they are competing against flag-down autos and rides, not to mention public transport and private vehicles (as electric bikes and cars get more popular), I think their model is not sustainable anymore and I expect them to struggle further as riders withdraw and once the demand-supply gap grows further, it's a downward spiral.

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