Uber is pouring huge amounts of money into this business. And it's not profitable.
I shudder to think what will happen when all the subsidies are removed. If you don't have any assets besides a clean driver's license and a recent car, you got nothing coming.
I'm not sure they can realistically cut what the drivers are earning by much. What seems more likely is that fares rise to $2-3 per mile (or whatever number), which puts them more in line with traditional cabs, and let ridership fall where it may.
Maybe that matters psychologically, but not in bottom lines.
Drivers might be fooled for a bit, but once the fares rise, I'll be willing to bet the driver network collapses. They're not that stupid. If slinging burgers is more lucrative than driving Uber, they'll be slinging burgers.
That's fair. Less work for no more money on a per-ride basis. The driver network will certainly decrease. Not clear what the overall dynamics look like. I do think that prices need to get to breakeven in the fairly near future and self-driving isn't going to make a difference in an interesting time horizon.
Uber is pouring huge amounts of money into this business. And it's not profitable.
I shudder to think what will happen when all the subsidies are removed. If you don't have any assets besides a clean driver's license and a recent car, you got nothing coming.