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Uber and Lyft are quitting Minneapolis over a driver pay increase
(www.engadget.com)
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this post was submitted on 15 Mar 2024
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The apps weren't profitable. They sold rides for less than it cost them, which killed the industry. That's what all disruptive companies do, sell for an unprofitable price and have investor money make up the difference.
Taxi companies could not compete. How could they? It didn't matter if they were good or bad. There was no chance to compete because they all went out of business.
Again, the apps didn't win because they were better, it's because they didn't allow competition. In a sane world they would have had to have made a profit, and the taxi companies would have made their own app, and things would be pretty much equal across the board. But that never happened.
I rarely ever took cabs or other such transport because they're universally dodgy as fuck. Apps made it convenient and accountable, thus succeeded.
You miss the point, taxi companies couldn't compete with apps, they couldn't have their own app. Because of investor lead disruption
Some taxi companies made their own applications.
Again, they did and failed because they couldn't compete because investors paid for the likes of uber to run everyone out of business. I don't know how more I can explain this to you, but you don't seem to understand.
There was nothing stopping them and they set their own up; I'm referring to places in the UK where I know it happened, and some other countries too (SEA).
Likely because of your explanation in the first place.
okay you are obviously taking this far too literally, obviously they could make an app, but the apps could not survive and exist because the competition would undersell them, paid for with investor money.
do you see what i'm trying to get through to you yet? everyone is saying "well the apps are better!" when the reality is that the big investor backed corporations like uber pushed all the smaller taxi firms out with uncompetitive price undercutting, they didn't die out because they didn't have an app, they couldn't survive with an app or without - they couldn't make that app to make you happy because you'd still pick the 20% cheaper one anyway
Well yes, I read what you said as you wrote it. I can't infer very well over text.
Honestly, it was both, plus a third thing.
Uber/Lyft pay like shit and run at a loss.
Cabs almost universally sucked. Nobody wanted to use one outside of somewhere like NYC; and only then because parking sucked so hard driving yourself is an even shittier option than the shitty cabs.
In places like NYC, the government over regulated cabs so hard the medallions cost into the 6 and 7 digits of dollars. Out-competing that simply involved....not paying 7-digit sums of cash just for the ability to work as a cabbie...
I still don't understand how Uber and Lyft can be so expensive to run.
They aren’t. You’re paying a smallish dev staff and some people to answer emails. The rest is pure profit. If you’re not making money then you’re an idiot.