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Discussion Starter · #1 · (Edited)
Is Uber popular primarily because it is cheaper than a taxi?
Ladies Man Travis said rates have remained low due to competition.
However rates inevitably will eventually increase - current rates are not sustainable for Uber and Uber drivers alike.
UberX will be more expensive than a taxi. Increase will reduce ridership.
Uber also needs as many "partners" as it can sign up which leads slimmer pickings for work force.
Surge is another Uber upside down part of equation.
 

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It's primarily more popular for 2 reasons.

#1 It's almost always cheaper unless there is heavy surge.

#2 Pax don't have to tip. Almost always one of the first things people mention when they say what they like about Uber is that they don't have to tip. It's probably the reason why Lyft can't get much traction going in Boston. People don't want to be remembered as being cheap by not tipping on the Lyft app so they use Uber instead.

Lastly rates have not remained low due to competition. Rates are artificially low and being subsidized by investors. They are keeping them artificially low so they can attract bus users. The more bus users they can attract to their customer rolls the higher their IPO when they finally go public.
 

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It's primarily more popular for 2 reasons.

#1 It's almost always cheaper unless there is heavy surge.

#2 Pax don't have to tip. Almost always one of the first things people mention when they say what they like about Uber is that they don't have to tip. It's probably the reason why Lyft can't get much traction going in Boston. People don't want to be remembered as being cheap by not tipping on the Lyft app so they use Uber instead.

Lastly rates have not remained low due to competition. Rates are artificially low and being subsidized by investors. They are keeping them artificially low so they can attract bus users. The more bus users they can attract to their customer rolls the higher their IPO when they finally go public.
I'd add a #3 - it's convenient. With cabs you've either got to try to flag one down on the street (easier in a city, next to impossible in the suburbs) or call a taxi company. If you're calling, you're having to talk to someone, tell them exactly where you are, and find out roughly how long it'll take for your ride to appear. With Uber or Lyft you can just tap your phone screen a couple of times and you'll know who's coming to get you, what car they're in, and when they'll be there. You know upfront what it's costing, and you don't need to carry cash.

Personally, I'd pay a couple of bucks more for that level of service - I personally don't think that this race to the bottom is going to do Uber any good.
 

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I'd add a #3 - it's convenient. With cabs you've either got to try to flag one down on the street (easier in a city, next to impossible in the suburbs) or call a taxi company. If you're calling, you're having to talk to someone, tell them exactly where you are, and find out roughly how long it'll take for your ride to appear. With Uber or Lyft you can just tap your phone screen a couple of times and you'll know who's coming to get you, what car they're in, and when they'll be there. You know upfront what it's costing, and you don't need to carry cash.

Personally, I'd pay a couple of bucks more for that level of service - I personally don't think that this race to the bottom is going to do Uber any good.
It's all about the price. Cabs have apps and credit card machines. You can even pay on the app if u choose. The best is the price is always $3.65 a mile and a start rate of $1.75 and more than 80% tip pretty decent.
 
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