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by cljs-js-eval 2599 days ago
As someone who did not have a car for the better part of a decade, living in one city known for a good taxi system and one without a good taxi system:

"sustainable industry" is not the term I would use to describe taxis. Their dispatch systems badly needed replacing.

Things I saw in taxis pre-uber:

- Calling a dispatcher and giving an intersection, to receive a "we don't pick up at intersections, you need a valid street address" message. This was in the city without a lot of taxis. Gee, wonder why.

- Drivers speeding off once they realized you didn't mean to go to the airport.

- Drivers intentionally using both feet to drive, so they would stay well below the speed limit. If confronted, it was in the name of "safety". Dispatchers couldn't track locations so they had no idea how long the trip should take, and weren't interested in you as a repeat customer enough to do anything to the driver.

- Multiple broken card readers.

- Generally, it was impossible to understand dispatchers. Almost every one I talked to had a thick accent beyond what I would expect from even a newer first-generation immigrant.

1 comments

sure, taxis were horrible and expensive. however, they made enough money to sustain themselves with their high prices, low margins, and crummy service. I guess the question is, what would Uber/Lyft have to charge to break even? 10% more? 50% more? What would they have to charge to justify their share price? Do they make sense as businesses?
Given the strides they've made in automated dispatching and the increased demand for taxis that has come about as a response, I'm guessing the model makes sense at a higher price than they currently charge.

I was literally the model customer for taxis. No car, disposable income, goes out drinking a lot. Even so, I actively avoided taxis whenever I could before uber hopped on the scene. It wasn't a question of money - their dispatch services actively left money on the table with their terrible, terrible quality.

Whether Uber/Lyft took out too much money remains to be seen. But the dispatching technology is an immensely profitable business by itself.