Originally Posted by Willclark
I realize that I am on an oil forum where you cheapskates argue that Walmart (Warren) Synthetic 5 30 is just as good as name brand stuff. Most of you are just looking at the bottom line. The lowest price. And it's shame. The funny thing is in, Chicago, the legit taxi drivers still make money but it's a little harder. Elderly people, who don't have cell phones don't understand Uber. There will always be a plays for the professional taxi driver.
The American consumer is free to look for the lowest price, what's wrong with that? That's not exactly an unreasonable goal. If you're saying they should pay more for reason X, what's the reason? I'm willing to bet it's something to subsidize someone else, no thanks. Why should the American consumer pay more to subsidize someone else? Is that other person going to subsidize them?
Uber, Lyft and ridesharing destroyed the taxi industry because the taxi industry has had decades of monopoly and grew complacent, period. The Sears v. Amazon comparison mentioned earlier is spot on.
Most if not all ridesharing companies started out not even owning a fleet and the majority of their business is still not actually owning a fleet. Why? Because they operate in the gig economy and make their money between the rider and the fleet/driver, where as the taxi industry ignored that aspect entirely.
Think about all of the reasons why people prefer Uber:
1. A centralized, reliable name in transportation that is available across multiple countries. Most of the taxi industry is local, you have the NYC Taxis, then smaller taxi companies within each country, et cetera.
2. A lack of a customer service system. Customer service is huge, some industries live and die based on customer service alone. I've taken taxis all the time in NYC, you know how many times I was asked for feedback? Never. The taxi industry is fine with pay for your ride, then leave, ridesharing companies realized that asking customers for feedback, then looping that back into their drivers to have their drivers change pain points results in better service and more money. Inversely bad drivers who aren't receptive to feedback are weeded out. The taxi industry can't even come close to this.
3. Hailing a ride itself is a nightmare. In some areas like NYC people stand out in the rain with their arm out and still get passed over. In some cases there was alleged racial discrimination at play. Growing up we had to call by phone. Modern ridesharing companies built platforms that let hailing occur over the internet, with location matching, intelligent routing algorithms that factor in cost and distance to save time and money, routing and assignments being done by algorithm so that discrimination is minimized since less of the control is given to humans, AKA the actual driver or dispatcher.
4. Passengers themselves are scored/ranked and can be outright banned for unprofessional behavior. This gives drivers a way to counter bad customers.
5. The pricing, there are numerous stories of drivers running long routes unnecessarily to run the meter longer. The ridesharing companies invert this and throw it on to the driver, not the passenger, the driver is given an ideal route and if they can get there faster or have knowledge to minmize the route, they come out on top. This is a far better system for the consumer so they're going to choose it.
6. Finally there's the convenience aspect. Your card is linked to your account, your payment is done automatically without having a driver sit there and count your money. It's also arguably safer for the driver since it eliminates people who ride and dash.
Notice what all of these have in common? They have nothing to do with an actual physical fleet and very little of this was addressed by the industry, because the industry ignored this stuff which was between the passenger and the driver. This is all done in software, from the algorithm that dispatches drivers to passengers, the calculation of routes, where the drivers are, feedback mechanisms, driver/passenger ranking systems, the mobile app. They realized that what sucked about the industry was how they handled everything between the driver and the passenger, not the actual fleet itself. The passenger never had problems with the fleet, they had problems with everything else in between. Ridesharing companies fixed that and therefore destroyed the competitors that didn't.
If things like this didn't happen we'd still be having ice delivered to our houses. If there's a problem, people come along to solve it, period. The taxi industry never looked itself in the mirror.
The taxi industry and the medallion system is crony capitalism, just like states banning Tesla from selling their vehicles due to the dealership industry, nobody should accept crony capitalism. You don't think it's wrong that people used to pay hundreds of thousands of dollars for a medallion? That they saw that as an investment because it was a guaranteed way to stiff the consumer? It was supposed to be used to control the amount of drivers on the road, its rise in value tells you it was completely distorted for personal gain. They can find other ways to mitigate traffic without shafting consumers.