The sharing economy, fueled by the internet’s capacity to match small buyers and sellers, looks like a revolutionary business model. But for this model to be sustained, there must be a reliable source of long-term profits. Ride-hailing is perhaps the application of the sharing economy that is currently most developed, so its success or failure will teach us a great deal about the model’s viability in the global business landscape.
At some point, you have to make a profit.
It also ads a cynical angle to “disruption” that’s often omitted: you have to burn a lot of money, maybe even 5 or 10 year’s worth. Older companies often can’t do this without a huge financial and share-holder toll.
Source: Why Uber’s Business Model May Not Be Viable
“I can live without Facebook. I can mange without Google, but given my inability to (and more importantly lack of desire) to drive, I cannot survive without Uber.”
Original source: Uber, Lyft & the roads of hell
“About 103,000 for-hire vehicles operate in the city, more than double the roughly 47,000 in 2013, according to the Taxi and Limousine Commission. Of those, 68,000 are affiliated with ride-hailing app companies, including 65,000 with Uber alone, though they may also provide rides for others. In contrast, yellow taxis are capped by city law at just under 13,600.”
On the other hand, it’s probably easier to get around, even if slower. And, you know, how are you gonna solve for the density of Manhattan, esp. if people don’t want to foot the bill for lots of mass transit?
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