Interesting initiative from Uber, but I doubt that it will achieve it's intended impact. First, the ability to drop low-earning routes risks disrupting users’ routines. The bigger issue, to me, is the unclear market positioning. Early in the article, Route Share is described as “50% less than an UberX for the same trip,” targeting price-sensitive commuters. Yet later, it states fares are dynamically priced and “while more expensive than a $2–$3 bus fare,” the service “isn’t for price-sensitive users.” This contradiction suggests Route Share could likely exclude those who were supposed to benefit (<$75K, students, people with irregular schedules), unless value prop is compelling and clear. Also, reliance on “pre-tax commuter benefits” and the Price Lock subscription still skews the target user toward high-income and formally employed individuals.
Excellent points. I think Uber has to keep the price dynamic, so they can also convince drivers to take these routes, but I agree on the impact it has on consumers.
It seems to me that IF this market has legs (big if), it would logically be picked off by a vertically integrated robotaxi company. With route offerings and utilization levels predictable in advance, there's no need for Uber's sophisticated algorithms or access to Uber's customer database. A robotaxis service could be scaled over time to provide far cheaper service without the need to pay Uber's middleman matchmaking fees. And given the directional unbalances in daily commute trips, the robotaxi should only be willing to accept the number of peak hour directional rides as they can comfortably find return riders. On a broader note, it's interesting to me that the largest robotaxi provider in the world's largest rideshare country market is a vertically integrated company that owns the technology, the vehicles and the rideshare platform (Baidu) and NOT the biggest rideshare company Didi. Long term, I see the US moving in that direction as well, despite the fact that Waymo is for now hedging its bets
I tend to agree, but it will be interesting to see how quickly we transition to a more complete coverage of robotaxis. In the interim, a mixed solution (which is what Uber offers) will dominate over an only-robotaxi solution.
Interesting initiative from Uber, but I doubt that it will achieve it's intended impact. First, the ability to drop low-earning routes risks disrupting users’ routines. The bigger issue, to me, is the unclear market positioning. Early in the article, Route Share is described as “50% less than an UberX for the same trip,” targeting price-sensitive commuters. Yet later, it states fares are dynamically priced and “while more expensive than a $2–$3 bus fare,” the service “isn’t for price-sensitive users.” This contradiction suggests Route Share could likely exclude those who were supposed to benefit (<$75K, students, people with irregular schedules), unless value prop is compelling and clear. Also, reliance on “pre-tax commuter benefits” and the Price Lock subscription still skews the target user toward high-income and formally employed individuals.
Excellent points. I think Uber has to keep the price dynamic, so they can also convince drivers to take these routes, but I agree on the impact it has on consumers.
It seems to me that IF this market has legs (big if), it would logically be picked off by a vertically integrated robotaxi company. With route offerings and utilization levels predictable in advance, there's no need for Uber's sophisticated algorithms or access to Uber's customer database. A robotaxis service could be scaled over time to provide far cheaper service without the need to pay Uber's middleman matchmaking fees. And given the directional unbalances in daily commute trips, the robotaxi should only be willing to accept the number of peak hour directional rides as they can comfortably find return riders. On a broader note, it's interesting to me that the largest robotaxi provider in the world's largest rideshare country market is a vertically integrated company that owns the technology, the vehicles and the rideshare platform (Baidu) and NOT the biggest rideshare company Didi. Long term, I see the US moving in that direction as well, despite the fact that Waymo is for now hedging its bets
I tend to agree, but it will be interesting to see how quickly we transition to a more complete coverage of robotaxis. In the interim, a mixed solution (which is what Uber offers) will dominate over an only-robotaxi solution.