why they do that
In developing countries, the taxi market is largely unregulated and Uber faces actual competition. Uber cannot compete on price in these regions.
Uber shuts operations in Nigeria and Uganda with immediate effect
21–30 of 121 posts
Re: Uber shuts operations in Nigeria and Uganda with immediate effect
#22Earlier quoted context omitted.
In developing countries, the taxi market is largely unregulated and Uber faces actual competition. Uber cannot compete on price in these regions.
their only leg up in 1st world countries was largely going around any laws governing taxis
Re: Uber shuts operations in Nigeria and Uganda with immediate effect
#23Makes sense, Uber's 30-50% cut is far too much. How can they compete with inDrive which only takes 10%. And on inDrive you set your own fare. Rides are 20-40% cheaper elsewhere, why would anyone pay extra for Uber?
I would pay extra because I don't want the cognitive load of haggling on the cost. When I want/need A ride, it's because I'm either overloaded, away from home, or drunk. These are three times that I didn't want to bother with any more nonsense.
Re: Uber shuts operations in Nigeria and Uganda with immediate effect
#24Earlier quoted context omitted.
I would pay extra because I don't want the cognitive load of haggling on the cost. When I want/need A ride, it's because I'm either overloaded, away from home, or drunk. These are three times that I didn't want to bother with any more nonsense.
haggling when drunk is super fun
Re: Uber shuts operations in Nigeria and Uganda with immediate effect
#25Earlier quoted context omitted.
In developing countries, the taxi market is largely unregulated and Uber faces actual competition. Uber cannot compete on price in these regions.
Does no one have any memory of what taxis were like and how much they cost? The taxis are gone because they weren't competitive.
Re: Uber shuts operations in Nigeria and Uganda with immediate effect
#26why they do that
In developing countries, the taxi market is largely unregulated and Uber faces actual competition. Uber cannot compete on price in these regions.
Re: Uber shuts operations in Nigeria and Uganda with immediate effect
#27Earlier quoted context omitted.
In developing countries, the taxi market is largely unregulated and Uber faces actual competition. Uber cannot compete on price in these regions.
Counterpoint : in Portugal they are regulated under TVDE, and Uber is competitive with Bolt
Re: Uber shuts operations in Nigeria and Uganda with immediate effect
#28Earlier quoted context omitted.
Does no one have any memory of what taxis were like and how much they cost? The taxis are gone because they weren't competitive.
taxis “weren’t competitive” when Uber rides were heavily subsidized and Uber was burning billions. I ride taxi now exclusively because it is almost always cheaper than Uber
Re: Uber shuts operations in Nigeria and Uganda with immediate effect
#29Re: Uber shuts operations in Nigeria and Uganda with immediate effect
#30Makes sense, Uber's 30-50% cut is far too much. How can they compete with inDrive which only takes 10%. And on inDrive you set your own fare. Rides are 20-40% cheaper elsewhere, why would anyone pay extra for Uber?
One anecdote for a datapoint: Not sure if it's better now but I've lost a phone in an InDrive and I've lost an expensive bag in an Uber and it was significantly easier and less sketchy to get the bag back. I'm not a price sensitive rider so the insurance of a reputable 'comfort' tier Uber driver paid off. The InDrive driver made me get another ride to him then demanded $1000mxn (~$55usd) to return my phone. The Uber…
If you actually live in developing regions:
1) your income is much lower, and you are quite price sensitive. The Uber price premium (20-40%) hits much harder.
2) the Uber alternatives are noticeably cheaper for the exact same trip.
Regarding your experience, if you were local, that inDrive driver likely would not have tried to extort $1000 MXN out of you. They saw you were a visitor and took advantage of you.
In Nigeria or Uganda there are few tourists, so Uber cannot rely on a stream of price-insensitive travelers to fill their cars. It makes total sense why they struggled in (and gave up on) the local market there.