Uber.... Pls explain.

[stomachmonkey]

Originally Posted by Macroni

Here in Philadelphia, a taxi medallion was valued at $500,000, they are now reduced to $10,000 at the latest auction. Uber has changed the marketplace.

I do not understand how an unregulated vendor can just enter a marketplace and be able to operate unrestricted while the incumbent is still required to maintain the standards established by the community in the same marketplace. I do not understand how these small business owners can have not only their livelihood disrupted but their substantial investments in the medallions wiped out.

I understand the horse whip factory closing but this seems different. Especially considering they lost $1.2 Billion dollars. This gives the impression that their product is being sold under the true cost of a viable enterprise.

Pretty much my feeling.

Not that I like the pricing or product provided by the previous "standard" but it's really unfair.

I have a regular driver that I've been using for years.

Last trip he told me he's ditched the traditional route. He'd tried the ride share model and was barely covering expenses.

He's now independent and it was only possible due to licensing restrictions being eased. He used to have to pay for licensing and take a yearly test for each county he wanted to operate in.

Still his revenue is off significantly for the same amount of work and he's considering hanging it up all together.

It's not like he was making a killing before but at least he was making a living.

[1990C4S]

Does it make sense that a taxi license is worth $500,000? To me that means the protectionism put in place allows excess profits for someone. Probably not the driver, they get screwed over by the license owner.

A taxi driver used to have to know all the streets and was expected to navigate a quick route from memory, that's no longer needed as Waze can do a better job 90% of the time.

I've been in a lot of ****ty taxis, I've never been in a ****ty Uber car.

The taxi cartel did this to themselves, and I suspect the drivers are better off.

[Seahawk]

Originally Posted by Gogar

Demand pricing is a pretty basic concept.

Alive and well on the Beltway around DC: The toll lane fares adjust to traffic flow and are posted electronically. The same stretch of highway will be $1.00 at lunch time, $4.00 during rush hour.

EZ Pass is a beautiful thing.

I haven't ubered yet but the process sounds great.

[motion]

Originally Posted by 1990C4S

The taxi cartel did this to themselves, and I suspect the drivers are better off.

+1,000

High prices, crappy cars, mean spirited drivers.

What could go wrong?

Uber has had a profound impact on the way I travel and interact with the world. I used to either pay $100 to a thieving cab driver for a 15 minute cab ride at 1 AM in a strange city, or walk. Now I Uber for $8 or so. And, I get to chat with an interesting person in that part of the world.

Taxi drivers in most parts of the world are thieves. In Billings, Montana, I hire taxis all the time. They get $25 plus tip for my wife and I, for a 10 minute cab ride to the airport. And, they will sit at the curb with us in the back seat, trying to rustle up 2 more passengers. Uber has arrived in Billings as of August 5th, so we will no longer be subjected to this ridiculous behavior. Even in London, notorious for its knowledgeable taxi drivers, Uber is a clear win.

[sammyg2]

Originally Posted by Macroni

Can someone please explain how Uber works to me? I am a taxi guy yet my kids Uber..... How does it work and what is the economics behind it?

I have a friend who does the uber thing. he has 145,000 miles on his Hyundai and only 2 more years of payments

People who don't understand that there are other costs to operating a car than just paying for gas, sign up to drive other people around for a price that is nearly break-even when it's all said and done.

[Macroni]

I hear you.....

I am an Adam Smith devote, I believe in an economy free of regulation with supply and demand satisfying our needs. When Tesla wanted to break the dealership model and move to corporate store they changed regulation. I felt that was the proper way for change to be enacted. IMO, Uber is defying and in fact breaking the local laws. Yes, you are getting a cheaper ride in a personal car but it is in fact at the expense of the taxi industry. Does this mean the taxi industry needs to change ... yes .......but Uber will also eventually have to conform also. We regulate business in the US.

[sammyg2]

BTW, I've taken a real taxi twice in the past couple of years, both were broken down POS with a go-zillion miles on them with little or no maintenance.
One was a mini-van and the driver could not go over 60 (in the car-pool lane) or the front wheels would shake the steering wheel out of his hand.

The other was a prius that was so filthy and disgusting it would get towed away if parked legally in Tijuana!

I'd rather walk than pay one of those junkers $80 to drive me 30 miles.

Good thing the company was paying for it.
And of course, zero tip.

No maintenance, no extra $$$$ for U.

[JavaBrewer]

Originally Posted by sammyg2

I have a friend who does the uber thing. he has 145,000 miles on his Hyundai and only 2 more years of payments

People who don't understand that there are other costs to operating a car than just paying for gas, sign up to drive other people around for a price that is nearly break-even when it's all said and done.

The first couple times I used Uber the driver was not working FT as a driver. One guy was in medical sales and would pickup rides between North County <-/-> SD on the I-15. He drove a really nice Audi. The other guy was on his way home from work and going my way.

Lately my rides have been with folks who are working the Uber gig FT and fall into the above quote. I'm guessing the best (most lucrative) times are midnight - 8 AM. My DFW to SD filght was cancelled by American at 0200 (already 4 hours delayed) and my Uber ride from the airport to hotel cost me $38 for a 15 mile ride. I tipped the driver $5 for such a clean car and great attitude.

[Alan A]

May want to pick up a few of those medallions.
This burn rate won't go on for ever.

Uber lost $7m a DAY in the first half of this year • The Register

[Macroni]

Originally Posted by Alan A

May want to pick up a few of those medallions.
This burn rate won't go on for ever.

Uber lost $7m a DAY in the first half of this year • The Register

Interesting......

[M.D. Holloway]

The Private Equity/VC guys will never run out of funding this venture and at some point profitability happens – the question is real valuation...