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0 pointslacker6y ago0 comments

If it turns out the market isn't viable at those costs (i.e. if people just stop taking rideshares altogether because it's too expensive), then it never should have existed in the first place.

I think we basically agree. The dangerous outcome is that Uber becomes more expensive for end users in California, Uber drivers become employees, but they make exactly minimum wage because that's the minimum Uber can pay them, and Uber's profits in California go to zero. (I doubt the Uber business will cease to exist because taxis are so bad in comparison.) Uber's market shrinks because they became more expensive, so they can hire fewer people.

Is that better for anyone? It sounds worse for both Uber drivers and for Uber users than the status quo. Unless you think that a minimum wage job is superior to the current job of Uber driver, and we really need more minimum wage jobs.

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compiler-guy6y ago

Things that can't go on forever don't go on forever. Uber's business model is unsustainable at its current prices. At some point, the investor money will run out, and it will have to either raise prices or cut costs. It's very hard to see where it can cut costs.

Which means it is inevitable that Uber will become more expensive, or it will fail. It's just a matter of time.

fountainofage6y ago

I want to highlight very few Uber drivers make more than minimum wage once the total costs are taken into account.

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