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I always liken it to using Uber in ~2012. It was fun to get around major metro areas for dirt cheap. But then prices rose dramatically over the next decade+ as the company was forced to wean itself off of VC subsidies.




It’s common since year dot fir new businesses to compete on price to attract customers and gain market share. It wasn’t invented by uber

Same with Airbnb. Oh and Moviepass. Those were the days.

I watched a friend of mine minmax Moviepass so hard. They were so doomed.

Except none of those cost structures are based primarily on a resource that gets cheaper over time.. a.k.a. compute.

Computer isn’t getting cheaper, growth right now is supply constrained to memory which if you haven’t seen the news recently…

Training is getting exponentially more expensive. And inference isn’t that cheap unless you can do it locally

The energy demand doesn’t decrease.

... and people kept using Uber.

Uber and Lyft put all the taxis out of business and now cost as much as the taxis they displaced

Ever notice that even where Uber doesn’t operate most of ride sharing alternatives work pretty much the same way? Go to South Asia, China, Middle East, or South East Asia.

Consumers pick those services because of what Uber pioneered — trust and convenience. You know exactly how much you pay, you pay everything upfront, you know you are dropped off where you need to be. There are of course exceptions, but exceptions they are.

Cost maybe the initial selling point but people stick with Uber and similar services despite higher cost, not because they don’t have other options.


> because of what Uber pioneered — trust

I really dislike the retro fitting of history. I’ve read more occurrences of serious SA by uber drivers and zero for normal taxi in the last few years


Not everywhere. Here the government fucked Uber etc. big time because it required the companies to pay for taxi licenses if I remember correctly. That is if they want to deliver a taxi service.



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