Early on in Uber's life, I went to a presentation they held where they showed there was a U shaped curve by income of who used Uber. Upper middle class people used them as discretionary entertainment vehicles but Uber had a substantial lower class population using them as necessary transport when working graveyard shifts in locations public transit didn't go.
So yes, there's a surprising contingent of people who commute to work every single working day using hire cars.
Most wouldn't because it's expensive. But at scale automated vehicles should be dramatically less expensive, in the range of 50-60¢/mi conservatively, and at that level it is going to be quite compelling to a lot of people since it's a private vehicle (no taxi driver) and it's reasonably affordable, a 1 seat ride, etc.
It's possible they'll be even cheaper but that range is the cost according to the IRS of operating a typical vehicle all in, and that seems like a reasonable guess of the cost of an autonomous electric vehicle with far lower probability of crash than a human (all the savings basically going to profit margin).
At ~60¢/mi, there'd be a lot of people who would save money on balance using autonomous taxis to get everywhere vs owning a private vehicle (10k mi/yr would cost only ~$6k/yr, a pretty low cost of ownership/use for a private vehicle).
First of all, some people do commute via ride hailing apps, yes. Second of all, transportation is a much bigger category than simply taking people to and from work.
I imagine this seems "true" to people who don't consider public transit an option for whatever (class) reason.
As others have said, they definitely compete in the same market.
As a blanket statement that's not true with NYC being the most obvious (but not the only) counterexample.
Do you commute to and from work every day by taxi in NYC
Early on in Uber's life, I went to a presentation they held where they showed there was a U shaped curve by income of who used Uber. Upper middle class people used them as discretionary entertainment vehicles but Uber had a substantial lower class population using them as necessary transport when working graveyard shifts in locations public transit didn't go.
So yes, there's a surprising contingent of people who commute to work every single working day using hire cars.
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Most wouldn't because it's expensive. But at scale automated vehicles should be dramatically less expensive, in the range of 50-60¢/mi conservatively, and at that level it is going to be quite compelling to a lot of people since it's a private vehicle (no taxi driver) and it's reasonably affordable, a 1 seat ride, etc.
It's possible they'll be even cheaper but that range is the cost according to the IRS of operating a typical vehicle all in, and that seems like a reasonable guess of the cost of an autonomous electric vehicle with far lower probability of crash than a human (all the savings basically going to profit margin).
At ~60¢/mi, there'd be a lot of people who would save money on balance using autonomous taxis to get everywhere vs owning a private vehicle (10k mi/yr would cost only ~$6k/yr, a pretty low cost of ownership/use for a private vehicle).
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First of all, some people do commute via ride hailing apps, yes. Second of all, transportation is a much bigger category than simply taking people to and from work.
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