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by kelnos 650 days ago
I don't think that follows. Prices are set by market forces, not by cost (though cost is usually a hard floor).

Waymo rides cost within a few tens of cents of Uber and Lyft rides. Waymo doesn't have to pay a driver, so what's the deal? It costs a lot to build those cars and build the software to run them. But also Waymo doesn't want a flood of people such that there's always zero availability (with Uber and Lyft they can at least try to recruit more drivers when demand goes up, but with Waymo they have to build more cars and maintain and operate them), so they set their prices similarly to what others pay for a similar (albeit with human driver) service.

I'm also reminded of Kindle books: the big promise way back when is that they'd be significantly cheaper than paperbacks. But if you look around today, the prices on Kindle books are similar to that of paperbacks, even more expensive sometimes.

Sure, when costs go down, companies in competitive markets will lower prices in order to gain or maintain market share. But I'm not convinced that any of those things you mention will end up being competitive markets.

Just wanted to mention:

> AI Law Enforcement: Will piece together all the evidence in a split second and come up with a fair judgement. Will prevent crime before it happens by analyzing body language, emotions etc.

No thanks. Current law enforcement is filled with issues, but AI law enforcement sounds like a hellish dystopia. It's like Google's algorithms terminating your Google account... but instead you're in prison.

1 comments

I take waymo regularly. It is not within a few cents of Lyft or Uber.

It costs me, the consumer, 2x what Lyft or Uber would cost me.

I paid $21 for a ride on Mon that was $9-10 across Uber and Lyft. I am price inquisitive so I always double check each time.

I guess the questions then are - why is it 2x the competing price, why do you willing pay 2x, and how many people are willing to pay that 2x?

Consider they are competing against the Lyft/Uber asset-light model of relying on "contractors" who in many cases are incapable of doing the math to realize they are working for minimum wage...

All those businesses are predatory. It’s so crazy.
I used to call it the re-intermediation economy.

Taking a cut of existing businesses/models (taxi, delivery, b&b, etc).