In London Uber is unravelling already. Here Citymapper is the default transit app and Uber is just one of the options listed. The transfer cost for a customer changing app is 0. We keep saying we’re “not sure” whether Uber will have customer retention... no, of course it won’t! Unless they change their model, they’re the biggest VC folly in recent times. Just proves how overheated the market become when F/A/G acquired everything in the market that competes with them, leaving ridiculous Vc money to flow to dumb ideas like Uber.
no VC money anylonger, now it's stock market money, i.e. our pension funds
Wait, you guys get pension funds?
> The big question is driver retention and how much Uber subsidizing drivers is required.
In Australia we've got drivers advertising other services directly to riders. Most of these are probably subsidizing rides to enter the market, but how long can uber continue losing money as competitors try and enter the market?
These retention numbers, for any business that needs returning customers or service providers pretty much make or break all the customer/provider acquisition economics.