[PlunderBunny]

I think Uber’s profitability has also been achieved by passing what would be debt to a traditional taxi company (the maintenance of the fleet of taxis) onto the drivers. I think many drivers aren’t making as much money as they think they are.

[ctoth]

Did this change since Uber was created? Did Uber previously, back when people were making their "Uber is Doomed" comments pay to maintain drivers' cars? If not why bring it up?

This is a pattern where people have their pre-loaded criticisms of companies/systems and just dump them into any tangentially related discussion rather than engaging with the specific question at hand. It makes it impossible to have focused analytical discussions. Cached selves, but for everything.

[heavyset_go]

Yes, Uber paid drivers more in the beginning, and even facilitated car loans for them lol

[charcircuit]

But did their business model require them doing that forever? That seems like something they can cut back on once there is a healthy size of drivers in a market.

[dvfjsdhgfv]

Yeah I agree it was the original plan from the beginning: use Saudi money to strangle competition and then get the prices back to taxi level (or higher). I believe they partly succeeded by making a compromise here: they both cut the payments to drivers and increased prices.

The original plan worked because in the switch-and-bait phase they were visibly cheaper so in the last year people's mental and speech model changed from "call me a taxi" to "call me an uber". But at least in my local market, the price difference between a taxi an and uber in 2025 is negligible.

[heavyset_go]

A decade ago in NYC, they were giving out free rides left and right. I used Uber for months without paying for a single ride, then when they started charging, they were steeply discounted. I could get around for a little more than a subway fare.

Lyft did the same thing, got a bunch of free rides for a while with them, too.

[PlunderBunny]

What I think has never changed, is that most people do not understand depreciation on an asset like a car, or how use of that vehicle contributes to the depreciation. People see the cost of maintenance of a vehicle as something inevitable that they have almost no control over.

[watwut]

Yes, Uber was paying drivers more and that is how they were able to have good service.

[oblio]

Awesome, Uber is profitable by creating a society damaging business model which is copied by other companies.

Phew, I'm so sad I was a Uber critic from early on...

[keeda]

I think the point is about Uber's profitability and not necessarily about their business practices or ethics, and we should be careful not to conflate the two. It is absolutely valid to criticize the latter, but that (so far) seems mostly orthogonal to the former.

Now, it is totally possible that their behavior eventually create a backlash which then affects their business, but then that is still a different discussion from what was discussed before.

[frm88]

There is also a significant difference in insurance. Taxi companies usually have comprehensive insurance, hence the higher standards for drivers and vehicles (monitored and maintained) while Uber has a more differentiated model (part driver, part company, not monitored):

https://jjlegal.com/blog/rideshare-vs-taxis-understanding-ac...