Why then, is there no similar service with human drivers right now?
And I think Google Maps starting to integrate things like Uber is a sign of a more integrated market for transport. If you can say "directions to work" and get a one button option to book the whole 3 part journey, alongside the other options, it suddenly becomes a lot more practical.
Why do you think removing human drivers will make enough of a difference? From the numbers I have seen (I can look them up when I'm not on my phone) the driver is only about half of the non-tip cost of a hired car. Do you think cutting the cost in half is sufficient?
If you charge close to linear pricing over short distances, I think it could be very affordable.
And another advantage is that the service doesn't have to be immediately popular to be cost effective, since you don't need to pay drivers to sit around to provide availability.
The issue of profitability again is orthogonal to drivers. How do you pay for vehicles and maintenance of your service is not profitable?
In any case, to answer your original question: Yes, I think halving the cost of taxis will make a significant difference to their viability in many use cases. I think costs may also fall further than that, as regulations have been limiting competition in taxi markets. (And just intuitively, one would expect that sharing a car should be cheaper than owning one.)
Moreover, I think taxi markets were stagnant for a long time, so the lack of such a service in the past doesn't necessarily mean it couldn't have been viable, and the new players may simply not have explored this kind of service yet.
>How do you pay for vehicles and maintenance of your service is not profitable?
The point is that without a driver, your ongoing costs (i.e. fuel and maintenance) are more proportional to usage. A driver sitting doing nothing is costing you money, but a car sitting doing nothing barely does.
Think it is too obvious to miss...
>The point is that without a driver, your ongoing costs (i.e. fuel and maintenance) are more proportional to usage.
isnt it the same with a driver too?
And a switch to a transport-as-a-service model can make the advantages of the train much more apparent. Open Google Maps and ask for directions: Do you want to take a single 1 hour drive, or a 30min train ride with 5min connections at each end that costs less?
And then when people in the office hear about how your commute is 20mins shorter thanks to the new train line, maybe they want one too...