Right now they need humans to drive their cars around but as soon as they can they will surely shift to automated cars. If they've already built the scheduling systems necessary they'll be able to combine that with the mindshare they've been building and be in a great position.
Uber is Netflix in 1997, sending DVDs through the mail to people's mailboxes, carefully awaiting the day when the technological infrastructure will support their true purpose.
Riding alone? If so, they send a 1 person vehicle to pick you up. Riding with a friend? Two person vehicle. etc.
In fact, I think self-driving cars together with decent electric engines (which already exist) can revolutionize urban landscape.
Just imagine how quiet and pollution free our cities will be if the only traffic allowed inside are electric cars, who automatically go to charge themselves when necessary.
EDIT: Possibly I'm being too pessimistic. I expect automated cars could be really, really awesome and if so, and if they're allowed anywhere, eventually there'll be pressure in other cities to allow them too.
Maybe this won't be as widespread a problem as I think it could be. Zipcar seems to be rather successful, although I've never used one.
Generally, the number of livery service drivers and cars is not limited.
That said, the Washington, DC taxi commission has been hassling the Internet-based Uber. Last month they ran a sting against an Uber-arranged driver and impounded his car.[1]
[1] http://www.washingtonpost.com/blogs/mike-debonis/post/uber-c...
I'd like to be able to give my kids an RFID tag so that I could send them to school when I'm running late, or pick them up after sports practice. Trust will be an issue... but entirely doable.
or renting a car every other day. I paid 1/8 of zip car's prices when i used enterprise rentals for two months
In NYC it's at least $2/hr more expensive. Cabs become competitive, and there are tons of cabs. There are many more people but not as many cars as SF, so it's harder to get a car. It's mostly good for moving apartments without dealing with U-Haul, going to IKEA/Fairway in Red Hook or picking up craigslist stuff.
I found in LA, the zip cars were so spread out, I first had to figure out how to get someone to drive me 15 minutes to the car.
to go the nearest market here you already spent mileage enough to get the rental for the day with unlimited miles.
and there's more car rental places than zip cars.
Individually, the costs go down (one car, woot!). Societally, (assuming anthromorphic global warming ;) the cost is much higher.
Of course, with one car, I can afford a far more green car, so maybe it balances out again.
I imagine something similar would crop up with self-driving cars to alleviate the rush hour capacity issues somewhat.
Of course, in actuality there would be plenty of people who would demand their own private car out of principle.
It's worth remembering that companies are free to do this already. Most don't, however, because they want to maximise the amount of overlap with other businesses they need to interact with. It also conveniently fits in with other things in family life, such as the kids going to school, or sports, etc.