It's worth separating out the benefits of some the features the Uber app has introduced from the company itself. It's great that there's better tracking of journeys, a little less anonymity about which vehicle you are in, the ability to order without having to call, and the ability to easily pay using credit cards.
These features are however largely available through other operators at this point. Users just need an Uber-free city for a week to start using Gett and others to appreciate that they exist. With the extra custom they would gain from an Uber-free city for a matter of months they could invest in getting the rest of the way, and we would be able to choose from a range of providers all delivering a superior experience.
As to the company itself, they have been providing cheaper journeys than black cabs, that is certainly true. They've managed that through driving down driver remuneration, and pushing investment costs and risks onto drivers. Even then they continue to make a massive loss in most markets. There is only one viable long term plan - drive out competition and then push up prices. Competition in London includes not just black cabs, but also trains and buses. The threat of an Uber monopoly in the 10 year timescale is that all transport will become more expensive, less environmentally friendly and less flexible for everyone.
This situation will likely worsen if the economy actually picks up. At that point not only would real jobs become available, leading to a loss of drivers, but the car loan bubble will certainly burst, leading to collapse in the number of people who could drive for Uber even if they wanted to. The only people benefiting in these circumstances would be the VCs who own Uber.
You may feel that's a price worth paying for a few cheap trips this year. Personally I'm not sure I agree.
These features are however largely available through other operators at this point. Users just need an Uber-free city for a week to start using Gett and others to appreciate that they exist. With the extra custom they would gain from an Uber-free city for a matter of months they could invest in getting the rest of the way, and we would be able to choose from a range of providers all delivering a superior experience.
As to the company itself, they have been providing cheaper journeys than black cabs, that is certainly true. They've managed that through driving down driver remuneration, and pushing investment costs and risks onto drivers. Even then they continue to make a massive loss in most markets. There is only one viable long term plan - drive out competition and then push up prices. Competition in London includes not just black cabs, but also trains and buses. The threat of an Uber monopoly in the 10 year timescale is that all transport will become more expensive, less environmentally friendly and less flexible for everyone.
This situation will likely worsen if the economy actually picks up. At that point not only would real jobs become available, leading to a loss of drivers, but the car loan bubble will certainly burst, leading to collapse in the number of people who could drive for Uber even if they wanted to. The only people benefiting in these circumstances would be the VCs who own Uber.
You may feel that's a price worth paying for a few cheap trips this year. Personally I'm not sure I agree.