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by jaredklewis 3266 days ago
In my experience, if there is an easy way, low risk for a company to make more money, then they will do it. So why haven't Amazon, Google, or such done so already? Do they just hate money?

Reasonable answers include:

- Google and friends don't perceive the ride-sharing market to be a profitable market to enter, in which case Uber may have problems, but competition from Google, Amazon, et all is not one of them.

- It actually isn't so simple to just "spin up" such a service. It would require a large investment in terms of development, regulatory hurdles, and marketing just to get a foot in the door, with a high level of risk that the effort doesn't succeed (see most all business ventures ever).

Uber has many problems. But competition from Google, Amazon, et all is not one of them. Lyft? Yes. Google, Amazon, Apple, Facebook, and so on? No.

2 comments

I feel like the biggest hurdle these other tech companies see is a lack of "disruption" without automated driving. If a human is still driving then you can't really ever make the system more efficient.

Most tech companies have made their billions by automating processes and undercutting the old school competition. If you can't automate driving you can't build a strong competitive advantage against traditional taxi businesses.

Uber realizes this and they're willing to do anything, no matter how unethical, to get self driving vehicles first. That will be the true market disruption, and likely winner-take-all because you will instantly have such a gigantic cost advantage.

That's why you see Ubers competitors all working on self-driving. They're trying to leapfrog the next obvious evolution of the transport business.

Why would Google Amazon enter a market with 1 massive competitor losing billions subsidizing its rides?

Why wouldn't they develop their own self-driving technology while at the same time assisting in the building of using ride sharing as a habit, and simply wait until uber goes out of business or retreats even further into "profitable" markets before unleashing their low cost self-driving fleet into those markets previously dominated by a heavily subsidized uber?

oh wait a minute ...