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I once asked my father (a lifelong auto mechanic) why servicing high end vehicles is so expensive. Roughly from memory, don't quote me on makes/models/etc:

Most cars require special, often model specific, tools to service them. A specific adapter to take off an oil filter on your Honda Civic, or a set of special ramps that get your super low Ferrari on to the car hoist. The shop then has to amortize the cost of tools over the number of vehicles they service with it. So the special wrench used for the Civic can probably be used for 500 oil changes in a year, but the Ferrari ramps are used on maybe 10 a year. Not to mention the specific training required to do the actual service.

In a computer related example, imagine a receptionist that just needs Microsoft Paint to put text on signs around the office. Now compare that to an industrial designer that needs a $10,000 licence for a CAD application and specific training to do material stress analysis on your new iPhone accessory. Each sign has little to no incremental cost, whereas each iPhone accessory needs to pay for part of that licence and class.

If Uber were to buy thousands of the exact same vehicle, they would have a predictable amortization of a spark plug tension wrench, while a dealer might hope to get enough cars in a year to justify the cost.



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