Uber is destroying the taxi market in Sri Lanka
Sanjiva Weerawarana

Uber is doing this everywhere and SL is just one example. They lost $700 million in Q2 alone. They are betting billions of investor cash on driving all other competition to the ground (taxis and other ride shares) so they can get a monopoly position.

The taxi market has huge network effects. You want to develop a massive customer base (with cheap rides) first. Drivers go where the rides are (platform wise). Uber is aggressively doing customer acquisition at the moment.

Drivers are just a temporary concern for Uber. Their real goal is a driver-less fleet and they are moving fast and super aggressively on that. Some would say even too fast(see Waymo suite against Uber for stealing LIDAR).

And while that happens, they are trying to retain drivers while spending as little as they could on them (lower fares, designating driver as “independent contractors” so they don’t have to pay them benefits regular employees are eligible to, skirting government regulations regarding accessibility and background checks are just a few examples of that overall policy)

My guess is that Uber will have 25% of their fleet on driver-less vehicles before they even turn a profit.

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