[ABCLAW]

I think the point is that you used the service when VC money was being used to subsidize your ride. This is zero sum. Obviously the market for rides increases once the cost is artificially depressed.

From the UX perspective, Uber combines payment processing and ride ordering in an app. Obviously an improvement over calling a Taxi dispatcher and telling them when/where to pick you up. But is that billions of dollars in value? Or is the majority of that value just being scooped up from previous incumbents?

The economics of the industry haven't changed dramatically - it's expensive to pay people to be your chauffeur.

[jopsen]

Actually, I think I used Uber after it got slightly more expensive too. But, sure, it's hard to know how much of it is VC money -- are you sure they subsidize much beyond software development?

> The economics of the industry haven't changed dramatically - it's expensive to pay people to be your chauffeur.

True, and if we allowed more free competition on the market Danish chauffeurs would be out of a job real quick. Replaced by immigrants.

But the size of the market did change. And that was my point :)

I think there is more people making a living driving Uber, than there was driving taxis [citation needed] ;)

You could argue that Danish chauffeurs would loose their jobs.. but part of me thinks: so what? We have low unemployment, why not have them work more productive jobs?

> Or is the majority of that value just being scooped up from previous incumbents?

So you think the majority of riders used taxis regularly before?

I certainly didn't, and I still don't -- but ride-sharing services I would use it available.