Uber can ferry passengers around for cheap because some VC is pumping money into the company through a firehose. Take out the VC money, lets see how many Uber drivers will drive 80% below minimum wage to provide services.
Its easy to blame the regular taxi drivers. How many people here on this forum would take huge salary cuts to add profits to somebody else's wallet?
But it's easy to blame the regular taxi drivers because they are completely at fault. They could have increased the number of taxis, but they thought having a monopoly would make them richer. They could have provided better service, but they didn't want to. Now they have true competition, and their way of life is being erased because they don't want to admit that they are at fault.
I'm glad that ridesharing, be it Lyft or Uber or whoever else comes up, has destroyed the taxi industry. It's a great example of how fragile a monopoly is and how terrible service gets perpetuated by monopolies and lazy people.
And that will increase the supply of taxis and dilute wages. We are in a time, when even doctors control the supply of their kind so that they can have profitable careers.
>>Now they have true competition, and their way of life is being erased because they don't want to admit that they are at fault.
They have no competition. Unless Uber finds another set VCs to raise another $10 billion or so. And then VCs should be ok to not see a dollar of profit in return. Or Uber will have to raise its rates higher than regular taxis, and of course severely restrict the supply(You can't raise rates, with a oversupply of vehicles). Either option creating a system worse than taxi medallions.
In India that was never true, ever. The regular taxis existed, and Auto Rickshaws eat their lunch big time. Of course if you are ready to pay good money there will always be a service for you.
>>The most significant factor is not the price, it's the service.
And service comes with price. And price matters because for anything to scale the price has to be agreeable to a mass audience.
>>Taxi's do not come anywhere close to the simplicity, reliability, and comfort that Uber/ride-sharing apps deliver.
Sure. Very soon they have to turn in profits. We will see how much of that they can provide for a profit margin of something like 10-25 rupees per ride.