The more I study the Uber model and their investor relationships, the more I realize this is a sophisticated attempt to prey on flush investors. The model has huge flaws that they will not overcome without severe financial pain; for their customers and investors. In the meantime, Uber is buying publicity (positive and negative) and increasing capital pledges. When the dust settles, Uber will hurt their investors or change the pricing landscape in our industry, driving customers and followed by drivers to us.
Assuming nobody in our industry is investing in TNCs, then we only stand to benefit. Surge pricing is the direct result of not having enough supply. Low rates are the direct result of not having enough demand. Standard pricing trumps Surge pricing (customers of any company do not want pricing surprises). Uber is hiring drivers that care only about themselves and their income. They will become spoiled on surge pricing and refuse to work when surge pricing is not in effect…….causing more surge pricing. All good stuff for us because there will be more drivers and customers looking for a home. Both will want consistent pricing and income. The toughest task for us is determining what customers belong with our company as opposed to taxi companies and what drivers can become chauffeurs.
Our industry will finally answer the bell regarding quicker response times and embrace technology like it never has. Uber will not overcome their legal costs and regulation because it will struggle to compete on an even playing field. Even if it does, it won’t be able to satisfy the Uber expectations of their investors. Google may try to bring things to the finish line but I’m guessing the cost isn’t worth the reward.