Tag Archives: UBER

The Positively Pessimistic Future of Ridesharing Companies

Reading Time: 3 minutes

Much to the surprise of the public, Uber revealed its first profitable quarter after a decade of nothing but losses on Thursday (07/11/2021) announcing an adjusted profit of just US$8 million.

This is very low for a company for a net worth of their total assets coming to around US$33.252. Even better a company whose value is around US$91 billion.

This is accompanied with Lyft earning a net profit of around US$67.3 million, for the second quarter in a row. Lyft went public in April of 2019 with a net valuation of US$24 billion dollars.

On interviewing the co-founder and president of Uber, it was found out that airport rides had gone up by a factor of 3 compared to last year. Considering the impact COVID-19 had on public movement this is a good sign. More movement on the weekends with more cab rides being booked indicates that the effects of the pandemic are slowly but surely reverting. While Uber still is missing 4 million active riders it had in 2019.

Across the world, cab sharing services like Ola (India) and Grab (Southeast Asia) are seeing similar results with profitable margins as well.

But this has not come without a cost. Based on research from Rakuten Intelligence, the cost of a ride from an app like Uber or Lyft in North America has gone up by up to 92%.

But what do these numbers mean for the average consumer.

  1. Costs have increased across the board for a ride in these apps which is not good.
  2. Uber making its first profitable quarter is an indication that the direction they are taking is a valid one.
  3. This can cause prices to increase
  4. Not to forget that as drivers protest for more rights, it puts pressure on the company to make margins elsewhere which is most likely from the pocket of the consumer.
  5. Another place where it can hurt is that companies will start engaging in aggressive cost cutting strategies which can affect the job market
    1. An example of this is Ola who recently cut 1400 jobs in the company as a method to save costs and reduce driver incentives
    1. Uber and Lyft also have deployed self-driving divisions in certain cities to reduce the role of drivers in the transaction.

On the bright side, increasing costs encourages innovation much like how it did with Grab. Grab is now southeast Asia’s no.1 startup and is reaching a merger which will allow it to list in wall street. It is an all-in-one payment app, taxi app, food delivery and postal service app in one. This points to the future that now apps will to have diversify.

Looking at Uber alone proves this point. Uber earns 10% of its income from Uber Eats alone which is for food delivery.

So, to conclude, I would like to say that the return of Uber and other like-minded services starting to make profits in this year is a net positive as it indicates a return to life before pandemic where economic opportunity is available much more readily. But we must be careful of the future these cab sharing companies impose. A total control of the market by private companies is a sure shot way of creating a monopoly and crushing those who stand against it by force. Much attention must be paid to these companies and regulations need to be imposed to prevent them from using aggressive tactics to earn profits.

Sources:

https://www.ft.com/content/bcd71e2a-9ff2-4477-b995-ff82c5530bfb

https://en.wikipedia.org/wiki/Uber

https://www.cnbc.com/2021/08/03/lyft-earnings-q2-2021.html

https://markets.businessinsider.com/news/stocks/lyft-stock-how-valuation-compares-to-other-tech-names-at-ipo-2019-4#:~:text=%2424%20billion%20valuation.-,Here’s%20how%20that%20compares%20to%20other%20high%2Dprofile%20tech%20companies,back%20to%20the%20dotcom%20bubble.

https://www.businessofapps.com/data/uber-eats-statistics/

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Uber and Hyundai. Are we close to having air taxis on daily basis?

Reading Time: 3 minutes

Uber and Hyundai are collaborating to develop electric air taxis. The cars would revolutionize urban transportation. According to both businesses, they are entering a global race that will result in the advancement of ways to reduce traffic congestion in the world’s largest cities. Since 2016, Uber has been educating customers about the possibility of flying taxis. He intends to collaborate in this region with a total of eight firms. It functions as a safety net. The American corporation acknowledges that expecting all of its suppliers to hit the market at the same time would be unrealistic and irresponsible form business point of view.

Uber revealed its collaboration with Hyundai at the Consumer Electronics Show (CES). The company will produce flying taxis for Uber. A concept of such a vehicle and its associated infrastructure was also shown. The vehicles will be manufactured by the South Korean company, and Uber will, of course, offer flight sharing services. Aurora Flight Sciences, a division of Boeing, will also follow them. 

Hyundai.com

The flying taxis developed by Uber and Hyundai would be entirely electric and therefore very silent. They claim that by using smaller, electric-powered rotors, the aircraft can emit less noise than a combustion engine helicopter, which is important for communities concerned with noise emissions. The battery will allow you to travel up to 290 km/h over a maximum distance of 100 km. The vehicle can fly at altitudes ranging from 300 to 600 meters. During peak hours, recharging can take just between five or seven minutes. The cars would be capable of transporting up to four passengers. One of them will serve as the pilot at first. Uber will not have a completely automated fleet available to consumers until after 2028.

Hyundai also revealed designs for a landing center and an environmentally sustainable “Purpose Built Vehicle” (PBV) for ground transportation to and from the station. According to Hyundai, the PBV will look like a beige rectangle and will use AI to search suitable routes and fly in platoons. Each PBV would be able to perform a variety of functions, such as transportation, a coffee shop, or a medical clinic.

And how long would such a luxury set you back? 

Uber did not have specific pricing. We should anticipate that it would be expensive at first. Only as more air taxis arrive in the sky does the rate drop to that of Uber Black providers. According to Uber, if vehicles become self-driving, the expense of renting a cab would be the same as the cost of a regular car.

What’s next?

According to Uber’s announcements, the first private flying taxis could be operational as early as 2023. For the time being, it is only available in the United States. Currently the vehicles will only be operated by qualified drivers during the first phase of the project. However, the air taxis would eventually be completely autonomous. If it becomes success the vehicles will be for sure introduced in other countries. As a result of success, long flights will be avoided.  The technology is still in its early stages, and Uber and Hyundai, as well as a number of other players in the market, face immense regulatory and technological hurdles in launching their respective air taxi services.

In few years we will find out if air taxis will become our new reality. 

Sources:

https://www.cnbc.com/2020/01/06/hyundai-and-uber-team-up-to-debut-new-flying-taxis-at-ces.html

https://www.hyundai.com/worldwide/en/company/newsroom/-0000016369

https://www.technologymagazine.com/digital-transformation/uber-and-hyundai-future-air-taxis

https://www.focus.pl/artykul/za-4-lata-polecisz-uberem-podniebna-taksowke-wyprodukuje-hyundai

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Burgeoning electric cars market is very innovative

Reading Time: 4 minutesEarlier this month on the blog presented was Chinas elevated bus, Mercedes first fully electric transport truck and Tesla’s Gigafactory. It seems like electric cars field gets more and more fruitful as during the last couple of weeks we learned about many new innovations and cars getting ready to hit the market.

 

Tesla’s Model S P100D with 0–100 km/h in 2.5sec- as fast as Bugatti Veyron Super Sport

p100d-announcement

Tesla has presented an upgraded Model S with a new larger battery of 100kWh. This upgraded battery makes it fastest accelerating production car at the moment. The only faster cars where LaFerrari 4 and Porsche 918 Spyder which is no longer being produced. The cost of current fastest accelerating production car is $134,500 which is over 6 times less than the price of Porsche 918 Spyder of $847,000.

This version of Model S does not only give stunning acceleration but also increases the range of car to total 315 miles (~507 km) which are 20 miles (~32km) more than previous strongest Model S version.

 

Plugless wireless charger for Tesla Model S

The Evatron is almost ready to ship their new wireless charger for Tesla Model S called Plugless.  The innovation allows charging a car without attaching any cables to it simply driving on the pad providing induction power to Tesla. The only thing that needs to be done is installing an add-on module to Model S itself. The good thing is that such a module does not affect Tesla’s warranty. On top of it, the company gives their own 3-year warranty that covers any costs in a case when vehicle manufacturer voids a warranty as a result of use or installation of the Plugless wireless charger.

That is not the first add-on wireless charger company is offering. Until now they had in offer chargers for Chevrolet Volt, Chevrolet Volt Gen 2, Nissan Leaf and Cadillac ELR.

The cost of an add-on to Tesla Model S stands at the moment at $2440 including free shipping and vehicle installation. The one hour charging gives at least 20 miles of range(7.2kWh).

 

Affordable Volkswagen 2019 electric car with 300 miles range on 15-minute charge

vwevfuture

According to Herbert Diess, the chairman of Volkswagen company is going to put on the market in 2019 electric car with incredible fast charging speed. Similarly, to technology being introduced in modern smartphones quick charging technology is going to hit electric car market. This VW is going to get 300 miles range on just 15-minute charge. To see how big a difference it makes, let’s compare it to Tesla’s best model with the fastest charging speed which in 45 minutes is able to charge 80% of its batteries giving it ~252 miles range.

This charging speed requires 800-volt charging station which is yet to be widely implemented. But it is possible that adapted charging stations will be quite common in a couple of years as Volkswagen is actively looking into it (in the US and central-west Europe).

The car is said not only to have good range and very fast charging speed but also to be affordable as VW wants it to cost less than traditional cars with combustion engines.

The car will be presented this year on Paris motor show.

 

Uber and Volvo join forces to put on the market in 2021 self-driving cars.

Volvo_Cars_and_Uber

Uber and Volvo decided to join forces and invest jointly $300 million in order to create production self-driving car which is going to be based on XC90 SUV.

Probably even more interesting fact is that Uber testing the cars in a real environment right now in Pittsburgh, PA where Uber clients can have a free ride in the self-driving car while an engineer will sit in the front in order to monitor performance and when needed take control of the car.

Volvo and Uber are not only team trying to set up self-driving driverless taxi fleet. For the same year 2021, Ford set the date to put on the market cars without a steering wheel.

 

Yandex to build self-driving 12-seat passenger bus

YandexBus

Yandex the Russia’s leading search engine similarly to Google wants to be a part of autonomous electric cars market. Yandex in partnership with truck producer Kamaz, Daimler, and NAMI a government-funded research organization is building a self-driving minibus.

The shuttle bus will be able to fit up to 12 people and have a travel range of 200 km. The car will also allow passengers to specify their destination via an app on their smartphone. This may mean that it will work similarly to uberPOOL allowing to cut costs of the ride even further.

 

Small additional information: Baidu Chinese biggest search engine provider is not far behind Google or Yandex as it is on a way to have its own self-driving electric car based on modified Chery eQ.

Which of the presented news do You think has the biggest potential to make a big impact on the market?

 

References:

https://www.pluglesspower.com/

https://techcrunch.com/2016/08/18/tesla-model-s-aftermarket-wireless-charging-is-almost-here/

http://www.autocar.co.uk/car-news/new-cars/vws-2019-electric-vehicle-paris-motor-show-reveal

http://www.bloomberg.com/news/features/2016-08-18/uber-s-first-self-driving-fleet-arrives-in-pittsburgh-this-month-is06r7on

http://www.forbes.com/sites/briansolomon/2016/08/18/ubers-self-driving-cars-will-pick-up-passengers-in-pittsburgh/#79a25f1c6472

https://techcrunch.com/2016/08/18/uber-and-volvo-put-300m-into-building-self-driving-cars-ready-for-sale-by-2021/

https://techcrunch.com/2016/08/16/ford-to-ship-self-driving-cars-without-steering-wheels-brake-or-gas-pedals-by-2021/

http://www.bbc.com/autos/story/20160826-can-tesla-at-last-banish-range-anxiety

https://www.tesla.com/en_EU/blog/new-tesla-model-s-now-quickest-production-car-world?redirect=no

https://www.engadget.com/2016/08/28/yandex-teams-on-self-driving-shuttle-bus/

https://techcrunch.com/2016/08/26/russias-google-equivalent-is-building-a-self-driving-shuttle/

http://www.techtimes.com/articles/175317/20160828/chinas-baidu-unveils-new-all-electric-self-driving-car-testing-begins-for-modified-chery-eq.htm

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MAVEN – GM’s (DRIVERLESS) CAR-SHARING PROGRAM

Reading Time: 5 minutesMAVEN, GM’s CAR-SHARING SCHEME, IS REALLY ABOUT A DRIVERLESS FUTURE

(autonomous vehicles – part 4)

#AUTONOMOUS VEHICLES, #GENERAL MOTORS, #LYFT, #RIDE SHARING, #UBER

GM2

Picture:URL:http://www.wired.com/wp-content/uploads/2016/01/GM_Spark_STORY-ART1.jpg or URL:http://www.wired.com/2016/01/maven-gms-car-sharing-scheme-is-really-about-a-driverless-future/

 

Article: (from WIRED – http://www.wired.com/category/transportation/)

  • “Maven, GM’s Car-Sharing Scheme, Is Really About a Driverless Future”

Author: Alex Davies; Date of Publication: January 21, 2016

URL:http://www.wired.com/2016/01/maven-gms-car-sharing-scheme-is-really-about-a-driverless-future/

 

General Motors is launching a car-sharing program. It is called Maven, and it is to be accessible in exactly one city. What is more, nevertheless the fact that the concept is similar to the approach implemented by ZipCar, a car sharing company, it has to be stressed that GM does not actually want to be perceived as a contender. It is possible to conclude that General Motors – within this project – is concentrating solely on the future. However, it is also crucial to emphasize that the Detroit automaker has presented even more ambitious projects this month. The company introduced the Chevy Bolt, the first mass-market electric car. Moreover, it acquired the remains of Sidecar, the defunct Uber competitor, to dismantle it for parts. Furthermore, what was also presented in a separate post, the company is cooperating with Mobileye to develop maps for robo-cars. What is more, it is crucial to emphasize that GM is also working with Lyft with an aim of building a network of driverless vehicles. Due to the fact that Maven is available only in Ann Arbor, Michigan, it is likely to consider this project as a strange step. However, it has to be also emphasized that GM intends to deploy the Maven service within other cities soon – and it will not offer the convenience of Uber or Lyft. “Oh sure, there’s money to be made in car-sharing, as ZipCar and others have shown. But it’s small potatoes for a company like GM. It isn’t until you take the long view that this move makes sense,” Davies stresses. It is possible to conclude that Maven can be the base for the self-driving car network General Motors wants to create. It has to be stressed that the typical “owner-driver” concept that has been the most essential part of the auto industry for a century will not be vanishing anytime soon, however, the industry is in the middle of fundamental, revolutionary transition. What is necessary to stress is the information that GM claims some 5 million people worldwide use vehicle sharing services like Uber, and that number is anticipated to reach 25 million by 2020. Furthermore, it is necessary to emphasize that the emerging car sharing industry will be entirely remade by autonomous vehicles, and GM is trying to position itself for that change now. “We feel that we are very well-positioned as a company to be at the very forefront of this change in ownership model, change in mobility, particularly in the urban environment,” says GM President Dan Ammann. Moreover, it is possible to conclude that Maven can be characterized as a key to how GM is addressing that shift. It is important to emphasize that, in the beginning, the service is to be accessible to students and faculty at the University of Michigan’s Ann Arbor school grounds. Moreover, while concentrating on the number of available Maven vehicles, it has to be stressed that Chevrolet vehicles – Volts, Sparks, Malibus, and Tahoes – will fill 21 parking spots. It is also necessary to stress that users will have the opportunity to reserve cars via the Maven app, as well as use their phones to unlock and start the vehicles. What is more, the cars will support Android Auto and Apple CarPlay, what will allow users to carry their digital lives with them into whatever car they rent. “It’s a truly personalized experience. You can take your life with you,” says Julia Steyn, GM’s head of urban mobility programs. It has to be stressed that the program is complimentary and charges as little as $6 an hour to use a car, which includes insurance and gas. Furthermore, what is also crucial to emphasize is the information that GM is not the only automobile manufacturer exploring the new business models. It has to be stressed that Ford, among other undertakings, is testing peer-to-peer car sharing for its employees, and moreover, it will soon let up to six people jointly lease its cars. What is more, BMW conducted a vehicle sharing program in the Bay Area until November of last year, and Daimler’s Car2Go service works in many cities throughout the US and Europe. Finally, in November, Audi deployed a premium car sharing service in San Francisco and Miami. It is necessary to emphasize that – in the next few months – GM aims to extend Maven to other municipalities. Furthermore, its actual mobility programs, including car sharing services in New York City and Germany, will be enclosed into the new program. It is possible to conclude that Maven will offer services adjusted to users in cities, on campuses, and residences like co-ops. “We see it as a real commercial opportunity,” Ammann says. It is necessary to conclude that it is possible to distinguish many opportunities concerning the expansion of this new program: geographically, with more cars, with more types of cars, by trying new pricing schemes, and by bringing in new customers. However, for the moment, all that is distinct from GM’s autonomous vehicle research and its partnership with Lyft. GM wants to launch a ride-hailing network using driverless vehicles. It has to be emphasized that Maven can be the groundwork for that type of service, with ready-made groups of users, accurately organized by geography as well as by how they like to travel, already using a GM service. “We’re putting in place all the building blocks,” Ammann says. “This is all part of a very comprehensive approach.

In my opinion, it is crucial to emphasize that due to the autonomous vehicles’ development processes, the automotive industry – and thus its most essential part; the classic “owner-driver” model – is in the middle of fundamental, revolutionary transition. Moreover, it is necessary to stress that according to the General Motors Company nearly 5 million people worldwide use vehicle sharing services like Uber, and that number is anticipated to reach 25 million by 2020. Furthermore, it is necessary to stress that even though the car sharing programs are estimated to serve more than 20 million of people globally by 2020, this emerging car sharing industry will be also entirely remade with the introduction of autonomous vehicles. It is possible to conclude that, due to the current GM’s strategy toward Maven car sharing platform – therefore obtaining ready-made groups of users, accurately organized by geography as well as by how they like to travel, already using a GM service –, this service can be a perfect base for autonomous car sharing network. All things considered, I believe that the project of driverless car sharing services will have a significant impact on the broadly defined issue of travelling. In my opinion, autonomous car sharing companies will also have in their offers the opportunity to use their cars in a similar manner to bus services (specific routes and stops – in order to use while going to work or shopping), and moreover, the system will be basing on an Internet platform, where people will basically buy their “tickets”. However, while focusing solely on the advantages of autonomous vehicles, it will be possible to purchase or rent and plan even the longest journeys, not thinking about sitting in the “driver’s seat”.

Nevertheless, it is important to take into consideration the fact that some of benefits provided by autonomous vehicles may be limited by specific driverless cars’ regulations.

MZ

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