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by Bombthecat 3651 days ago
But there is a user lock in. After a while users won't switch. No matter the difference.

Also, they are not really on it because of the drivers and users game.

The end game is self driving cars to rent.

7 comments

A good analogy is the Airline industry. It is on demand just like uber, in transport just like uber, has pilots instead of driver (more expensive of course). Even with loyalty programs only a very small percentage of users lock-in with a single airline.
"But there is a user lock in."

Huh? How? I always check traditional taxi and Uber (Lyft is not in my town yet) to see which is cheaper at a given time. Or do people get attached to buses too?

And yet, people do switch browsers on the desktop, if slowly. Do you think that get-a-ride apps are stickier than browsers?
But there is a user lock in. After a while users won't switch. No matter the difference.

Users will switch if someone raises billions and spends that money subsidising rides for users and increasing the revenue for drivers. It's exactly the same model that Uber used to compete with taxis, and it works.

If Uber proves there's a huge market for their product then people will compete with them. This will happen whether or not there are humans or machines driving the cars.

Just note that in the end game the switching cost is much lower. You don't have to convince users and drivers, only users and buy a bunch of cars in one location.
Yup this point is critical. There is no loyalty bonus to stick on.
Yet. Who wants to take bets on how long it will be before they get their start a points system and start offering an uber credit card? I'm guessing a year.
Not so sure about user lock in. Whenever I need a ride i always check both apps and pick the one offering the lower price and I know several people who do the same.
There is about as much lockin as Groupon.