The underpricing of ridesharing was going to eventually hurt them in the long run. The heavy reliance on venture capital plus the classification of drivers as contractors was only going to last so long. Uber, Lyft and other similar companies are going to have to revamp their business models.
There is a certain average price point of a ride at which the companies can (1) operate continually in the black in their current structures, and (2) treat drivers like employees.
However, that cost will be steep. The question is – will riders accept? Or move to another mode – transit? slugging? or single-occupancy driving?
https://ftalphaville.ft.com/2020/08/13/1597305329000/Ride-hailing-s-collapsing-house-of-cards/
Leave a Reply