Everyone's talking about Uber and Lyft raising prices in order to make a profit... This article says otherwise. Oh, they are thinking of firing all drivers? oh...
- The global market for ride-hailing and robo-taxis could be worth $2 trillion by 2030, UBS has estimated.
- As autonomy makes the services even cheaper to provide, fares could shrink by 80% or more.
- That will put even more strain on public transportation systems, which are already losing passengers to ride-hailing.
I feel like they are just trying to hang in there until the autonomous vehicles finally come around, and they skyrocket into profitability...
"The average fare paid by passengers could fall by more than 80% and become cheaper than a metro ticket," the team of analysts wrote in their lengthy report to clients, published on May 22. "In such a scenario, the robo-taxi fleet would still generate a healthy profitability margin of more than 30%."
That's good news for Uber and Lyft, which are still heavily in the red as they continue to grow, but more bad news for public transportation systems. Multiple studies have already shown that ride-hailing services are quickly siphoning off users from trains and buses.