In the future when the industry consolidates, car services like Lyft, Uber and rental car compaines are dead. Google or <insert name> will offer free car service for playing ads the whole time on TVs. Car compianes will no longer sell cars in mass beacuse who wants that cost when you have a free limo. Subways and Buses will die a slow death because i have a free personal limo and no longer need to run on thier schedule. Gas stations, tire shops, carwashes are dead because free limo fleets will be maintained centrally. The list goes on and on. The winner will be whoever is building thier own cars cheapest with the best features much like the hypercloud companies build thier own servers. Is Google buying GM, Ford or Tesla? Is Apple buying one of the? Is Amazon buying one of them? Is Microsft even looking at the Advertising game in a free car service world?
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They have used advertisement in mass transportation before, it didn't cover all the cost. I'm talking TVs in buses, not just posters on the outside. What make you think advertisement could ever cover the cost of single passenger rides, which will still be an order of magnitude more expensive than mass transit.
do not compare advertisement efforts run by a city goverment to anything Google or Amazon can do.
Why not. Ad space is ad space
sounds like you were not around during the 2000 bubble. AllAdvantage? anyone used that back then? I made out like a bandit back in the days. good ole days.
AllAdvantage paid me over 10k in real money. Crazy.
How much of the cost of Uber is really the driver and not gas, vehicle maintenance, etc?
you are.looking at today's model. Cars will change drastically for self driving. do not apply old thinking.
Only things i see that will slow the progress are Hackers and Congress. Driverless cars will need fake steering wheels for the old farts in Congress to pass legislation. The wings on the space shuttle are there for congress to approve it.
Easiest way to control the driver less car market is to own the patent to the battery that goes 3,000 miles on a charge. Then all the players building thier cars have to come to you. I would do 10% ad revenue sharing for each car using my battery patent.
Your what fucking battery patent?
lol if you've ever looked at the costs of running a fleet business there's no way to make this free
and this is the thinking why lyft will be dead. By the way i hope you dont mined i took a screen shot of your response for a VC presentations
Show me the financial model of the free business and I'm game. Even at 90% utilization it doesn't become free. For ad-supported models you're CPM would need to be substantially higher then what the highest in market (e.g. $15)
Subscription service makes more sense than ads. There's no way you can cover all relevant costs from ads alone, let alone turn a profit
so you are saying i can't turn a profit on a $10,000 car that has a life of 300,000 miles. Pumping hundreds of ad views an hour.
Well, show me your numbers. How many impressions per miles? What's your expected CPM rate for your ads? Whats the cost of energy to power your car for 300000 miles? But at 3c a mile, I'll just be happy to pay to get rid of the ads.
You could take a look at Uber prices in 3rd world countries to get an idea of cost using current tech. Maybe $3-4 for a 30min ride in a city when you subtract out the minimal driver cost there.
That's precisely what I'm saying. YouTube ads cost around $7.6 per 1000 views for a 30 second pre-roll ads. Even at 15 seconds per ad we are talking about 4 hours of nonstop ads for less than 8 dollars. When you factor in the fact that people are not taking rides between 3-6AM 5 days out of the week your utilization drops off significantly. You know what I would pay for though? A membership to get rid of the ads so I can catch some peace and quiet on my commute.
yes a membership for no ads would be in the mix. thats a given. having starbucks coffee brewing will be another upgrade. The thread is about if you are not building your own cars to drive down cost the driver and driverless compaines will not survive. Skate where the puck is going.
I thought the thread is about the business model behind a driverless economy. Don't think relying on ads is the way to go. Nor do I think driverless cars will be free. It will be cheaper sure, but definitely not freeium like Spotify. The ad rev model works when your operation expense and distribution cost is extremely low. Anytime you move into physical world you have to consider depreciation and maintenance. I think it will eventually look like bike sharing, where you are charged either a membership fee or usage fee.
Isn't this a little too early to smoke even on a Friday?
Thats when the best ideas come out.