Companies like Uber (or Lyft for that matter) may go up in smoke but the idea of mobile ride-hailing and having an elastic fleet is so compelling that someone else will fill the void. The convenience factor is so astounding that the problem of economic sustainability will get solved one way or another.
I was recently in several Asian cities where the public transit was excellent and taxis were plentiful, but I still found it really useful having an app for those point-to-point transportation needs. Even though the rides sometimes cost the same or more than taxi rides, apps reduce friction and variability in terms of payment methods, language, route accountability, etc. and that is worth something. Ride-hailing apps don't just sell low-priced rides, they sell a lower variability experience.
There are players other than Uber in Asian markets (I used Grab) which have even better value propositions, so Uber is kept in check in those places.
It is true however that the economics does not work out at the moment (it's all investor subsidized, so there is a huge distortion in the market), but if we are able to avoid a monopoly situation, I suspect the market will right itself.
I was recently in several Asian cities where the public transit was excellent and taxis were plentiful, but I still found it really useful having an app for those point-to-point transportation needs. Even though the rides sometimes cost the same or more than taxi rides, apps reduce friction and variability in terms of payment methods, language, route accountability, etc. and that is worth something. Ride-hailing apps don't just sell low-priced rides, they sell a lower variability experience.
There are players other than Uber in Asian markets (I used Grab) which have even better value propositions, so Uber is kept in check in those places.
It is true however that the economics does not work out at the moment (it's all investor subsidized, so there is a huge distortion in the market), but if we are able to avoid a monopoly situation, I suspect the market will right itself.