Uber?
January 8th, 2019 at 10:16:15 AM permalink | |
ams288 Member since: Apr 21, 2016 Threads: 29 Posts: 12533 | I always thought Uber's business model was to lose a bunch of money until they put the cab companies out of business so then they can start price gouging. “A straight man will not go for kids.” - AZDuffman |
January 8th, 2019 at 10:33:55 AM permalink | |
Fleastiff Member since: Oct 27, 2012 Threads: 62 Posts: 7831 | once cab companies are effectively out of business a newer 'uber'' will do ride share operation. |
January 8th, 2019 at 10:38:37 AM permalink | |
kenarman Member since: Oct 24, 2012 Threads: 14 Posts: 4516 |
EB you were in the cab business. The article says 85% of your revenue goes to drivers and cabs/cab overhead in the cab business. That leaves 15% to pay for everything else. There is nothing in the UBER business model that would significantly change this. You can confirm if 85% is an accurate figure from your experience. They pay their drivers less but they also charge less so their O/H percentage should be similar. In the New York City study I quoted many posts back they found 50% of the UBER cars were driving around empty, this did not include the off shift cars. Would you have had a profitable cab company with a 50% load factor? "but if you make yourselves sheep, the wolves will eat you." Benjamin Franklin |
January 8th, 2019 at 10:49:26 AM permalink | |
AZDuffman Member since: Oct 24, 2012 Threads: 135 Posts: 18212 |
Load factor should not matter as much for Uber since they are not paying for the load. Imagine I contract with LUV to fill seats. Deal is that I get 15% of whatever I sell, otherwise I pay nothing. I do need to sell some level of seats to eat, but I do not care how empty the planes fly. The President is a fink. |
January 8th, 2019 at 11:13:32 AM permalink | |
Evenbob Member since: Oct 24, 2012 Threads: 146 Posts: 25011 |
Yup, and the business owned all the cars and was responsible for the upkeep, insurance, and licensing. Plus we bought all the gas. And we still made money. And we had to pay the airport to sit our cars out there, yet another expense. Uber has none of those expenses. They buy no insurance, no gas, they own no cars except a few self drivers. I have no idea why they aren't making money. If you take a risk, you may lose. If you never take a risk, you will always lose. |
January 8th, 2019 at 11:30:54 AM permalink | |
kenarman Member since: Oct 24, 2012 Threads: 14 Posts: 4516 |
Because they aren't charging the same as the cabs. They discounted more than they reduced the costs of a traditional cab company. They have been adding drivers and customers faster than their revenues increase. They have the expense of huge server farms now to handle the millions of customers and drivers. Something that a traditional cab company doesn't have. Per customer it should be cheaper than a manned dispatch centre but it is far from an inconsequential cost. "but if you make yourselves sheep, the wolves will eat you." Benjamin Franklin |
January 8th, 2019 at 11:59:01 AM permalink | |
Evenbob Member since: Oct 24, 2012 Threads: 146 Posts: 25011 |
Still, their expenses are nothing like a real cab co. We had two full time 6 day a week certified mechanics, constantly working. They rebuilt engines and trannies, changed the oil in every cab once a week. Buying the cars and keeping them going was 80% of the expenses. And supplying hundreds of gallons of gas a day. This is where they're losing money, in promotions and all the rest of it. If you take a risk, you may lose. If you never take a risk, you will always lose. |
March 1st, 2019 at 12:35:55 PM permalink | |
rxwine Member since: Oct 24, 2012 Threads: 189 Posts: 18762 | Called the local Yellow Cab company to get a ride back to a car dealership. They are also using regular cars and drivers like Uber. The driver told me they still have and use the yellow cabs. Must be some sort of hybrid adaption. You believe in an invisible god, and dismiss people who say they are trans? Really? |
March 1st, 2019 at 12:58:52 PM permalink | |
terapined Member since: Aug 6, 2014 Threads: 73 Posts: 11799 |
Could be for airport business Seems airports still give cabs priority access Sometimes we live no particular way but our own - Grateful Dead "Eyes of the World" |
March 1st, 2019 at 2:42:46 PM permalink | |
Evenbob Member since: Oct 24, 2012 Threads: 146 Posts: 25011 |
And why do you think that is. The cab co's pay the airport a huge amount of money every month for the privilege of sitting there at the curb. Most airports ban Uber from picking up in the passenger area. At my airport it Uber/Lyft gets caught it's a big fine and your permanently banned. If you take a risk, you may lose. If you never take a risk, you will always lose. |