# Driverless Vehicles



## luckytown (Feb 11, 2016)

If rideshare is going to automation...what does this mean for its business model? Will they now incur a fleet and all the expenses that go with that...maintainence ,insurance etc....They dont have to pay the driver but the cost of operation will out last that savings....plus the constant lowering of the amount they charge the PAX.....thoughts??????????


----------



## RedANT (Aug 9, 2016)

* $50k+ per vehicle + insurance costs + gas + automotive maintenance + car cleaning costs.
* Many riders will NOT ride in a self driving car, resulting in less business.

Uber can't even turn a profit with drivers eating all of those costs. Do you really think they can make it work?


----------



## tohunt4me (Nov 23, 2015)

luckytown said:


> If rideshare is going to automation...what does this mean for its business model? Will they now incur a fleet and all the expenses that go with that...maintainence ,insurance etc....They dont have to pay the driver but the cost of operation will out last that savings....plus the constant lowering of the amount they charge the PAX.....thoughts??????????


They will offer driverless car owners to sign up.
Then screw them just like they did to Drivers !


----------



## heynow321 (Sep 3, 2015)

RedANT said:


> Uber can't even turn a profit with drivers eating all of those costs. Do you really think they can make it work?


exactly


----------



## getawaycar (Jul 10, 2017)

It can't possibly work. But plenty of investors will fall for the hype. They have poured billions into Uber but haven't seen a dime in return. A sucker is born every minute.


----------



## RamzFanz (Jan 31, 2015)

luckytown said:


> If rideshare is going to automation...what does this mean for its business model? Will they now incur a fleet and all the expenses that go with that...maintainence ,insurance etc....They dont have to pay the driver but the cost of operation will out last that savings....plus the constant lowering of the amount they charge the PAX.....thoughts??????????


They pay for our fleet plus profit for the driver now, so...?

Fleets are way way way way cheaper than individual car ownership. Profit.



RedANT said:


> * $50k+ per vehicle + insurance costs + gas + automotive maintenance + car cleaning costs.
> * Many riders will NOT ride in a self driving car, resulting in less business.
> 
> Uber can't even turn a profit with drivers eating all of those costs. Do you really think they can make it work?


We don't eat these costs. The passenger pays those costs plus our profit plus Uber's profit.



getawaycar said:


> It can't possibly work. But plenty of investors will fall for the hype. They have poured billions into Uber but haven't seen a dime in return. A sucker is born every minute.


So, the entire world auto industry and almost all major tech companies have conspired to trick investors which will eventually collapse their collective companies?

Sounds legit. I'm sure you're right.


----------



## RedANT (Aug 9, 2016)

RamzFanz said:


> We don't eat these costs.


If that's true, where do I submit my car payment bill, insurance bill, gas card bill and car wash bill to be reimbursed?


----------



## RamzFanz (Jan 31, 2015)

RedANT said:


> If that's true, where do I submit my car payment bill, insurance bill, gas card bill and car wash bill to be reimbursed?


You already were. If you didn't pay your costs plus pocket a profit, you need to make better business decisions.

Now dramatically reduce those costs using fleet maintenance. Economies of scale.


----------



## RedANT (Aug 9, 2016)

RamzFanz said:


> You already were. If you didn't pay your costs plus pocket a profit, you need to make better business decisions.
> 
> Now dramatically reduce those costs using fleet maintenance. Economies of scale.


Which is it...

1. I pay for those expenses.

or

2. Uber pays for those expenses.

As far as I'm concerned, if it comes out of my pocket, I'm paying for it. Do you not understand that?


----------



## RamzFanz (Jan 31, 2015)

RedANT said:


> Which is it...
> 
> 1. I pay for those expenses.
> 
> ...


I understand that is what you think.

3) In reality, the passenger is paying those costs.

From my fares, I pay all costs and pocket a nice profit. You don't?


----------



## RedANT (Aug 9, 2016)

RamzFanz said:


> From my fares, *I pay all costs*


Before I drove for Uber I had car maintenance costs too. Are you implying that someone else was paying my expenses back then too? Man, you sure are willing to twist reality to fit your utopian political agenda.


----------



## Gung-Ho (Jun 2, 2015)

RamzFanz said:


> They pay for our fleet plus profit for the driver now, so...?
> 
> Fleets are way way way way cheaper than individual car ownership. Profit.
> 
> We don't eat these costs. The passenger pays those costs plus our profit plus Uber's profit


The fallacy of this argument is most people that drive for uber ALREADY owned a vehicle so they don't have that as an initial expense or bought a used one for short money.

uber ended their leasing program I believe because they were losing their butts.

these sdc's uber would use will be new cars (obviously) and expensive.

So equating operating costs and simply calculating in uber keeping the share they now give the drivers to justify them someday being profitable is FALSE.


----------



## RamzFanz (Jan 31, 2015)

RedANT said:


> Before I drove for Uber I had car maintenance costs too. Are you implying that someone else was paying my expenses back then too? Man, you sure are willing to twist reality to fit your utopian political agenda.


What?

The costs of Ubering are paid for in the fare. Uber (pax) already pays for a fleet, they just don't own it.



Gung-Ho said:


> The fallacy of this argument is most people that drive for uber ALREADY owned a vehicle so they don't have that as an initial expense or bought a used one for short money.
> 
> uber ended their leasing program I believe because they were losing their butts.
> 
> ...


Looking at what we individually pay and what a fleet would cost Uber without considering economies of scale is FALSE.

If Uner kept what I earned, even as a part time driver, they could buy and maintain many cars. Now extrapolate that out to a car that can run 24/7 tirelessly.

Chances are pretty good Uner won't own or maintain most or even all of the fleet anyways.


----------



## Gung-Ho (Jun 2, 2015)

RamzFanz said:


> Chances are pretty good Uner won't own or maintain most or even all of the fleet anyways.


What!?

Then who pays for the car and maintenance and why would they take less than what uber pays drivers now?


----------



## RamzFanz (Jan 31, 2015)

Gung-Ho said:


> What!?
> 
> Then who pays for the car and maintenance and why would they take less than what uber pays drivers now?


They have auto partners who will probably provide the fleets for a piece of the pie. That's my educated guess based on what Lyft and GM are doing.

They would take less because of efficiencies of scale and fleet net profit needs over individual net profit needs along with intense competition to get to market and partner with the market leader.


----------



## heynow321 (Sep 3, 2015)

RamzFanz said:


> What?
> 
> The costs of Ubering are paid for in the fare. Uber (pax) already pays for a fleet, they just don't own it.
> 
> ys.


no, they pay 41% of the cost of the fare.


----------



## RamzFanz (Jan 31, 2015)

heynow321 said:


> no, they pay 41% of the cost of the fare.


That's a nonsense number derived by combining emerging market startup costs with mature markets that are profitable. If Uber stopped growth today and dialed back some new markets, the pax would pay 100% of costs plus profit.


----------



## heynow321 (Sep 3, 2015)

RamzFanz said:


> That's a nonsense number derived by combining emerging market startup costs with mature markets that are profitable. If Uber stopped growth today and dialed back some new markets, the pax would pay 100% of costs plus profit.


in what major markets is boober not "mature" yet? I mean, other than the ones they've been kicked out of and have lost out to competition. boober is still hemorrhaging money in all their markets. 5 billion last year. this is not a "start up" anymore. this is just a company with a god awful business plan dependent on unproven technology that doesn't exist yet.

good luck with that....


----------



## RamzFanz (Jan 31, 2015)

heynow321 said:


> in what major markets is boober not "mature" yet? I mean, other than the ones they've been kicked out of and have lost out to competition. boober is still hemorrhaging money in all their markets. 5 billion last year. this is not a "start up" anymore. this is just a company with a god awful business plan dependent on unproven technology that doesn't exist yet.
> 
> good luck with that....


They market by the city and they have many mature and profitable markets. Seems to me it takes them about 5 years to become profitable in a market, although numbers are scarce. That timeline, of course, should be shortening as they become more and more popular.

Uber sucks as a company. I'm not rooting for them, quite the opposite. But reality is what it is. MANY auto companies will seek to leapfrog the SDC competition using Uber, even if they don't like them.


----------



## heynow321 (Sep 3, 2015)

RamzFanz said:


> They market by the city and they have many mature and profitable markets. Seems to me it takes them about 5 years to become profitable in a market, although numbers are scarce. That timeline, of course, should be shortening as they become more and more popular.
> 
> Uber sucks as a company. I'm not rooting for them, quite the opposite. But reality is what it is. MANY auto companies will seek to leapfrog the SDC competition using Uber, even if they don't like them.


show me the document or press release that describes these "many mature and profitable markets". I know you think your subjective opinion is fact but, to the rest of us adults, that doesn't fly. I'll wait patiently for your link that shows the revenue and expense details on a market basis.


----------

