So, in many respects taxi companies are essentially becoming Uber in order to compete with Uber. Not shocking.
Cost is not the only factor. In fact, it's not even that important in terms of why Uber is trouncing taxis in terms of ridership. Uber has some very important UX advantages -- much lower wait times, integrated payment, fewer no-shows, ratings, less scummy drivers that people -- are willing to pay a premium for. Price is not the only variable in whether Uber can compete, your first link forgets that. UX is much more important IMO in terms of how shitty cabs are compared to Ubers.
Even only in regards to price, can uber compete on costs? your first link misses the bigger picture. Traditional taxi companies and Uber are efficient at different niches.
Traditional taxi companies (yellow cabs) are best at higher density areas due to being limited by the need for close-by depot, and 'base load' rides due to having a fixed supply of cars and not being able to dispatch new drivers as quickly.
Uber-models are good for all densities, and particularly areas with wide fluctuations in demand.
Taxis will need to adopt many Uber strategies in order to compete. They already have begun as you said. Taxi cabs sucked. Still do. And I would have no issue paying a premium to Uber to fuck it to the taxi cab companies. Especially when we are talking 10% difference in costs. UX dominates in terms of which ill choose to ride with.
Uber models are not going away, even if your first article thinks they will be slightly more expensive in certain scenarios and thus not able to compete at all, lol. What a leap in logic.
That said, will Uber be the long-term company that dominates? Maybe not. But their model will be.
Cost is not the only factor. In fact, it's not even that important in terms of why Uber is trouncing taxis in terms of ridership. Uber has some very important UX advantages -- much lower wait times, integrated payment, fewer no-shows, ratings, less scummy drivers that people -- are willing to pay a premium for. Price is not the only variable in whether Uber can compete, your first link forgets that. UX is much more important IMO in terms of how shitty cabs are compared to Ubers.
Even only in regards to price, can uber compete on costs? your first link misses the bigger picture. Traditional taxi companies and Uber are efficient at different niches.
Traditional taxi companies (yellow cabs) are best at higher density areas due to being limited by the need for close-by depot, and 'base load' rides due to having a fixed supply of cars and not being able to dispatch new drivers as quickly.
Uber-models are good for all densities, and particularly areas with wide fluctuations in demand.
Taxis will need to adopt many Uber strategies in order to compete. They already have begun as you said. Taxi cabs sucked. Still do. And I would have no issue paying a premium to Uber to fuck it to the taxi cab companies. Especially when we are talking 10% difference in costs. UX dominates in terms of which ill choose to ride with.
Uber models are not going away, even if your first article thinks they will be slightly more expensive in certain scenarios and thus not able to compete at all, lol. What a leap in logic.
That said, will Uber be the long-term company that dominates? Maybe not. But their model will be.