You made me wonder how many people are actually employed by Uber. I thought thousands sounded like a lot for what they do.
First Google result - 29,000 employees. That blows me away. It sounds like Uber itself is ready for disruption.
Uber isn't THAT complicated on the technical side. The driver/rider matchmaking is simpler than algorithmic trading code I've worked on, and I'm happy to take 1% on a trade in that space, yet Uber and Lyft are helping themselves to 30% or more.
I was personally thinking it'd be great to offer an Uber competitor that aims for complete transparency with no frills, like the Craigslist to Uber's Amazon/Ebay. Maybe charge $5 + 5% for matchmaking the rider with the driver if they use the app for payment, or free if the passenger pays with cash. I've heard a lot of horror stories about Lyft charging riders surge prices while paying normal prices to drivers, various apps stealing tips, etc.
I haven't tossed my MacBook into my carpet bag and run back to my hometown just yet, though, since I assumed there must be some good reason this hasn't already been done. Maybe it costs Uber $500 to background check and onboard a driver, or they eat 10% in credit card chargebacks, or something else I don't understand since I'm just a code monkey
Also comparing a 1% return to a 30% charge isn’t exactly fair. Fixed costs like background checks aside, chargebacks, fraud, insurance, support claims, incentives among others warrant the markup
1) Overpaid, wasteful software engineering (no offense to us). Like someone here said, there are a lot of cheap software solutions out there to handle this stuff
2) R&D into crazy moonshot ideas
3) Advertising
4) Making a completely opaque techno-dystopian game out of people's livelihoods in order to manipulate drivers into working harder for less money and riders into paying less up front and as much as possible in the long run
If I'm right, I'd ideally like to completely destroy this market for good. Fragment it into a separate crappy home-made app for each city that you find out about via a poster on the wall in the airport when you land. I'm hoping that with enough transparency and flexibility, riders and drivers would keep each other in check and come to a happy and sustainable middle ground without making any VCs rich
(Or maybe Uber/Lyft are operating on a level of efficiency that would make my half-baked idea look like a joke. Ain't nobody disrupting Amazon or Apple from their basement any time soon)
Self-driving cars is not such a moonshot at this point, and indeed may be the only way they reach profitability (still a while off, though, and Lidars need to come down in price)
This is a market with a completely unregulated taxi sector as long as you follow the base regulations. Maybe sometimes a bit archaic but I could finance a car and start driving within a month.
From what I've heard the only way to make a profit is to be a business owning about 50 cars which are staffed 24/7 and on top owning your own service workshops. It's extremely cutthroat.
The real advantage of self driving taxis isn’t going to be the self driving, it’s going to be the 24 hour/day shifts they can pull.
This is in contrast to air travel, where with the right discounts you can get people to fly at inconvenient times of day.
In Russia and some other countries there are cheaper competitors. In Phuket (circa 5 years ago) there were way worse replacements. Thailand had managed to keep Uber out of the tourist areas for many years with their local taxi cartel.
One thing that happened in Sweden though is that every single large taxi company made their own app with a big nice button for "I want a car, here, now", connected payment methods, and real-time tracking of the car you ordered.
So for me as a consumer, I can either press the button in a taxi app, and typically get a nice Mercedes or similar, with taxi plates, with a licensed taxi driver, properly insured, connected to a real taxi company with customer service representatives that I can call if anything goes wrong.
Or, I can press the button in Uber, pay the same money, but get a dude in his Toyota. Oh, and if the dude doesn't like me as a customer, he can downvote me, which results in me getting worse service in the future.
Say what you want, but at least the Swedish taxi companies out-competed Uber fair and square, instead of either giving up, or resorting to shitty political games to get Uber banned.
> Or, I can press the button in Uber, pay the same money, but get a dude in his Toyota. Oh, and if the dude doesn't like me as a customer, he can downvote me, which results in me getting worse service in the future.
Just to be precise, the dude in a Toyota will also be a licensed driver with taxi plates with their stuff in order, although exactly to the limit of the legal requirements.
They've just realized that in general very few customers care if the car is a new Mercedes or a new Kia hybrid. The only thing which matters is the cost at the time of pressing the button.