

Understanding the Economics of Uber - anon1385
http://talkingpointsmemo.com/edblog/understanding-the-economics-of-uber/#

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prostoalex
This is a good piece.

I have seen some anecdotal evidence of unsustainability of the business model
- e.g. a trip from my neck of the woods to LAX is priced as $114 on
Blacklane.com, $110 on Limos.com and $149-197 for Uber Black (so that the
comparison is apples-to-apples) - but was never able to articulate it into a
longer-term business model problem.

The car service companies do operate at lower-cost structure, and probably
don't mind using Uber to fill some spare capacity, but arranging for a trip in
advance via a cheap aggregator (not sure what Blacklane or Limos.com charge)
will always net the consumer a discount.

