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https://theconversation.com/ride-share-companies-are-losing-billions-so-why-their-interest-in-unprofitable-public-transport-132664>
"Why do Uber, Lyft, Didi, OLA and other ride-sharing companies want to partner
with public transport agencies? For Uber and Lyft, the reason is simple: their
business plans were based on eventually using driverless vehicles to eliminate
their main cost, the labour cost of the driver. But human drivers won’t be
replaced for some time.
While many of these companies have raised lots of cash from venture
capitalists, they are burning though it at an alarming rate. Uber made a loss
of US$8.8 billion in 2022. Lyft, Uber’s main competitor in the United States,
lost US$1.28 billion.
These companies, collectively known as transportation network companies (TNCs),
have two options to become profitable. They need to increase how much they
charge for their services, or find other revenue streams. So most have ventured
into e-bikes and e-scooters, food and freight delivery and public transport.
Uber aims to become the “Amazon of transportation” by creating a one-stop
platform for all transport services — known as mobility as a service (MaaS).
Its move into public transport is a natural progression.
Uber added trains, buses, planes and car rentals to its UK app last April.
While it’s not providing these services, the aim is to partner with other
transport providers so customers can use the Uber app to buy tickets. If this
service succeeds, Uber intends to expand it to other countries.
There are more than 4 trillion passenger miles taken on public transport
annually. Given this volume, surprisingly few public transport agencies make
money. One of the few is in Hong Kong, due to the operator developing the large
amount of property it owns around its stations.
Public transport is subsidised because it is essential for our cities; they
couldn’t function if everyone used a car to get around.
So how do ride-sharing companies think they can make money by getting involved
in public transport? Do they know something they’re not revealing?"
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
