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Comment by cissou | Hacker News Reader

That's the amazing thing about Uber: it does increase demand. By making it easier and simpler to ask for a cab, and actually providing an enjoyable experience in a market where expectations are very low, they managed to attract people who didn't really "need a ride" before.

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This does come up in every thread that touches Uber, posted from different accounts. But do you have any idea if this is actually the case? It sounds a bit implausible that measurably more people would suddently get a burning desire to call a cab just because the app is so cool. Numbers, or any facts at all, could certainly help make your case.

Even if the only difference between Uber and taxis was that Uber seamlessly takes credit cards, that's enough to increase demand vs. walking / public transit for the growing population that doesn't carry cash. Add in that an uber is much more likely to show up when called than a taxi, and all of a sudden it seems worthwhile compared to an airport shuttle or wheedling a ride from a friend. Finally, knowing you can get home after a late night without relying on the uncertainty of the taxi system may make you more likely to go out in the first place, again, increasing demand.

Just an anecdote, I sold my car after moving to Seattle because public transit + bike, Uber, Lyft, and Flywheel (yes, normal taxi) + Car2Go + car rentals, was cheaper than owning (including opportunity cost), storing, and paying insurance on my car.

I started using Uber and Lyft a few months after selling my car. Flywheel was a good enough and cheap enough alternative for my needs.

I highly doubt more people are calling cabs based on the technology, but I would definitely believe fewer people are buying cars (or people are selling cars) because alternatives are easy and plentiful.

Anecdotally: yes, it has for me and many people I know.

It's not because the app is cool. It's because it eliminates the biggest points of friction of taking a cab (namely, ensuring that one arrives soonish, and payment).

It would be shocking if that didn't increase demand in the margin. Who knows what the magnitude increase is, though (I believe it is significant).

I can only offer anec-data from the Atlanta area, but I know multiple people (including myself) that either sold a car or removed buy a car from their plans solely due to Uber. I've heard a lot of people state they used to risk a DUI driving home now take Uber instead.

It's nothing to do with the app being "so cool", but being able to get a clean car that actually shows up and being able to pay with a credit card. If you call a taxi in ATL, you expect at least a 15-30 minute wait if they show up at all. 90% of the time the driver will be blaring music or talking on their cell the entire ride. Some times they will refuse to take you to places, or refuse to run the meter but demand $xx for the trip. (Happened multiple times to me, all my friends have similar stories.) If the meter is running you have to carefully watch that they don't drive longer routes or even literally in circles (happened to me). And at the end of the trip, it's guaranteed they will only want cash and to take a CC will likely result in a screaming match and attempts to charge extra fees.

When Uber hit Atlanta, it was awesome. A car that actually shows up in 5 minutes? Clean, quiet, with a friendly driver? Map of your gps tracked trip emailed in receipt and card on file charged? The reasons people avoided cabs were removed. I personally take far more uber rides than I ever did taxis, and I know many friends for who it's the same.

It's not that demand for rides wasn't there, it's just there was no supply of quality rides before Uber. Taxis in ATL do not provide an acceptable experience, and are used only if there are no other options. People who before might have crashed on a couch, drove home after drinking, not attended an event with limited parking, asked a friend for a ride, etc. are using Uber because it's easy and economical. I have no idea how big of a percent this is nationally, but among the city dwellers in Atlanta I know of, Uber has been immensely popular and used for trips people would previously avoid with taxis.

Definitely true for me, I take more cabs in Providence since Uber became available because the local taxis are so inconvenient/bad I never considered it a real option, and I take more cabs in Boston because Uber is a lot cheaper than the yellow cabs.

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