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Uber is cheaper than cabs ... Is there a reason why Uber needs to be cheaper than cabs?


It's only cheaper because it's operating at a loss. Taxis do not operate at a loss.


But why does it need to be? I would still take a Lyft/Uber because the service is better, even at the same price.


You’re probably atypical. I don’t use any of these services much and am not very price sensitive especially given that it’s almost exclusively for business travel. But I’m guessing a lot of people using these services care a lot about 2x differences in price.


It needs to be because they're the new(er) player. There's a vast difference in attracting customers between "costs the same, but it's neater" and "it's neater and cheaper!".


Once all the full-time taxi drivers are out of their traditional cab job, who do you think they will drive for?




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