The Tech Guy #1579


Sam says that even with driverless cars, he’s not sure if Lyft can still make any money. There’s no networking effect. There’s no loyalty or switching costs. So the only way to make it work is to have a lot of drivers and lower fares. Also, companies like Lyft and Uber have no real hard costs or assets. They don’t own the cars, or have to maintain them, or pay for the gas. When you go driverless, suddenly you have to pay for cars and maintain them. Those hard investments and will be in the billions at first.

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