> Because people won’t pay $25 to take a 15 min ride.
Maybe not routinely (like to work or the grocery store), but:
I will absolutely pay $35 to get to and from the airport, which is 15 minutes away from my home.
I will absolutely pay $20 for a 10 minute ride that takes me to a restaurant or bar where I plan on drinking enough such that I don't feel comfortable driving.
I was just in Manhattan a couple weeks ago and paid a taxi to drive 10 minutes, and it cost around $20 with tip. This pricing scheme seems to work fine for traditional taxis.
I'm not saying everyone will pay this much. Maybe Uber's addressable market when charging the true cost of a ride is much, much smaller than they think it is, and they need to rethink and restructure how they operate. Maybe users need to expect longer wait times for a car, and lower availability. But that doesn't mean they're doomed or that they have an impossible business. That's like saying "taxis with an app" is an impossible business, and I don't think anyone can make the case for that.
The special cases you bring up are scenarios where there's a significant externality offsetting the fare.
If I take a rideshare to the airport, I don't have to leave my car in expensive airport parking for several days until my return. That can pay for a significant markup on the trip charge.
If I take a rideshare to a bar, I'm trying to dodge a $10,000 DWI ticket.
If I use one intermittently in Manhattan, it's likely part of the "few people own a car in Manhattan" dynamic, which is tied in part to having to pay hundreds of dollars per month just for parking said car.
Maybe not routinely (like to work or the grocery store), but:
I will absolutely pay $35 to get to and from the airport, which is 15 minutes away from my home.
I will absolutely pay $20 for a 10 minute ride that takes me to a restaurant or bar where I plan on drinking enough such that I don't feel comfortable driving.
I was just in Manhattan a couple weeks ago and paid a taxi to drive 10 minutes, and it cost around $20 with tip. This pricing scheme seems to work fine for traditional taxis.
I'm not saying everyone will pay this much. Maybe Uber's addressable market when charging the true cost of a ride is much, much smaller than they think it is, and they need to rethink and restructure how they operate. Maybe users need to expect longer wait times for a car, and lower availability. But that doesn't mean they're doomed or that they have an impossible business. That's like saying "taxis with an app" is an impossible business, and I don't think anyone can make the case for that.