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submitted 3 months ago by yogthos@lemmy.ml to c/technology@hexbear.net
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[-] PKMKII@hexbear.net 56 points 3 months ago

Uber was only ever cheap because the rides were being subsidized with VC money in order to try to run the competition out of business. It was the Walmart model, the “tech” element was puffery, novelty pulling the wool over everyone’s eyes.

[-] Chronicon@hexbear.net 27 points 3 months ago

As someone who never really took taxis in the pre-uber times I guess I'm not the one to know, but was it just puffery? obviously they only did it to kill competition, avoid regulation and taxes, etc. but was it not also genuinely more convenient to order a taxi through an app with your GPS location, vs calling and doing it over the phone (and presumably waiting longer)? In cities without the densities required to just be able to hail a taxi from the street, I assume it was a big step up, even if it was evil and all the other promises were fake.

The taxi industry was so decimated by the time I was old enough and in a big enough city that I don't have a good frame of comparison.

[-] LanyrdSkynrd@hexbear.net 9 points 3 months ago

There wasn't much in the way of innovation in Uber/Lyft. Private Taxi companies and the regulated cab commissions were able to get competing apps going pretty quick. They just couldn't compete because they had to charge some kind of fee to the Taxi operators, while Uber was giving users a huge discount.

The venture capital firms knew from the beginning that Uber wasn't about technology or innovation, it was about being the next tech monopolist.

Get in between businesses and customers in an industry that's going through a technological change. Subsidize to the benefit of the businesses and the customers to prevent competition. Grow until you have monopoly power. Increase the costs to the users, then increase the costs to the businesses. Next step is usually offering to sell the customers to the businesses(usually by selling ads), but I could see it being some kind of Uber driver gold subscription or something that gives you priority in the app.

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this post was submitted on 08 Aug 2024
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