Re:Confession: I Don’t Think Uber Is Actually a Great Busine...
by sulam on Saturday December 10, 2016 @09:24PM
(#13149242)
I'm pretty sure UberEATS must be a horrible customer experience based on the random shit I see happening at registers in places that I get food from. Stuff like the driver having no idea what the customer has ordered and just taking any old order the people behind the cash register are willing to give them. Since both ends of this transaction don't qualify as the sharpest tools in the shed, it's basically the blind leading the blind.
I get that it makes sense from Uber's point of view -- increasing driver utilization and smoothing out the supply side of the relationship is probably great for their unit economics. But they actually have to execute it well if they expect people like me to use it.
Having said that, it's definitely true that there are basically no meaningful barriers to entry beyond mindshare (after all, every Uber driver is also running Lyft, and likewise for the drivers -- and Lyft's better driver rates are also why I have to use Lyft when I leave for the airport at 3 AM).
Things like UberEATS may provide some stickiness, but I'm far from sold that their basic economics are going to work in the long run, let alone keep them in the market pole position.