Did you read the Fin Review article about Uber drivers making no money? IMO The Uber business is similar to the franchisor/franchisee model in Australia where one group has significantly more power. Uber has most of the power and the drivers have very little therefore the business is not sustainable in the long term. In good business models the employers and workers have a reasonable balance. Therefore the question is how long can Uber continue before there is a "driver" revolt? If there is no drivers for Uber there is no business and because it is all contract, drivers could disappear in large groups "Overnight". Again I don't see that in the short term but I can see it coming.
If Uber does shrink then Cabcharge will be the winner. IMO technology is the key. The secondary issue is that if someone is seriously injury or worse in an Uber and the insurance refuses to pay then that driver is going to have serious financial if they are sued.
My question to the group is that if Uber was the same price as a Taxi would they still have a clear advantage? Does everyone need a "personal" Uber driver or do the majority of "Taxi" customers just want clean/safe/available transport?
CAB Price at posting:
$2.54 Sentiment: Buy Disclosure: Not Held
