Disrupting Uber
Good luck with the co-op idea.<p>The problem is that drivers feel like their services are worth a lot, and passengers simply don&#x27;t believe it.  The reason why Uber is a success is that they created new demand by dropping prices.  Everyone I know, including myself, would never have taken an Uber as frequently as we do if the prices were as high as taxis.<p>You can&#x27;t replicate this unless you keep pushing prices down, and this is what Uber is doing.<p>So, as long as drivers want to keep their prices high, the riders won&#x27;t come, which will prevent more drivers from entering the co-op, which will mean riders will wait a long time before their drivers arrive, which means they will just go to Uber, etc.  The co-op will never reach critical mass that way and will fail.<p>The article doesn&#x27;t even mention the massive amounts of driver incentives that they pour back into the drivers.  One driver told me that if they worked 2 hrs during rush hour, Uber would guarantee $50&#x2F;hr.  That&#x27;s $100 for 2 hrs worth of work, which is pretty damn good and makes the rest of the day less stressful about trying to hit your numbers to become profitable.