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Uber as an Investment
Rank: Member Joined: 10/26/2008 Posts: 380
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Uber is reducing prices effective end of week by 35%.
Fares reducing from 60bob to 35 Bob, per minute reducing from 4 to 3shs. Min fare reduces from 300 Bob to 200 Bob. introducing wait charges. They will give hourly guarantees of 450-550bob to the partners.
Basically, they are doing the same experiment they did all over the world.
Tafakari hayo.
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Rank: Veteran Joined: 6/23/2011 Posts: 1,740 Location: Nairobi
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Will they be able to pay the car owner.
Or may I ask differently did it work else where ?
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Rank: Member Joined: 10/26/2008 Posts: 380
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In south Africa, it flopped and they had to revert pricces.
In Nigeria, it worked, and they made the changes permannent
In New York, they reduced prices 3 times.
As an investment, it looks bad. It will now make sense if the driver is the owner of the vehicle.
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Rank: Veteran Joined: 6/23/2011 Posts: 1,740 Location: Nairobi
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Just like a kiosk, its a do it yourself business
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Rank: New-farer Joined: 6/26/2013 Posts: 15
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streetwise wrote:Will they be able to pay the car owner.
Or may I ask differently did it work else where ? They have entered into a partnership with Total for Uber drivers to enjoy reduced fuel prices at select Total stations. They are fine tuning their model by also dealing with the expenses angle as well so the drivers margins don't become too thin.
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Rank: Elder Joined: 7/22/2009 Posts: 7,451
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Mkimwa wrote:Uber is reducing prices effective end of week by 35%.
Fares reducing from 60bob to 35 Bob, per minute reducing from 4 to 3shs. Min fare reduces from 300 Bob to 200 Bob. introducing wait charges. They will give hourly guarantees of 450-550bob to the partners.
Basically, they are doing the same experiment they did all over the world.
Tafakari hayo. Competition! Good for the customer. Of course some companies will not be able keep up and will fall by the way side but that is nature - survival for the fittest!!! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Veteran Joined: 8/25/2012 Posts: 1,826
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streetwise wrote:Just like a kiosk, its a do it yourself business I think some went in the matatu business way
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Rank: Elder Joined: 7/26/2007 Posts: 6,514
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Meanwhile, seems the usual Kenyan sickness of theft & corruption is slowly infecting the Uber model: Business opportunities are like buses,there's always another one coming
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Rank: Member Joined: 10/28/2008 Posts: 41
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Uber is very convenient, of that there is no doubt. But as an investment....erm... My problem is, why would I get into an arrangement where I own almost all the liabilities. Car(depreciating asset), fuel, insurance, service(recurrent expenses) maybe a loan(interest). Even if I am getting a bigger chunk of the revenue, I am also bearing the weight of not only more costs but the costs with greatest variability. The crowd will cheer your coronation as well as your beheading. People like a show, that's all.
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Rank: Member Joined: 9/9/2015 Posts: 233
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Both investments suck. "Buy when there's blood in the streets, even if the blood is your own."
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Rank: New-farer Joined: 6/26/2013 Posts: 15
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streetwise wrote:Just like a kiosk, its a do it yourself business I couldn't agree more
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Rank: Elder Joined: 10/3/2008 Posts: 4,057 Location: Gwitu
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KNM wrote:Uber is very convenient, of that there is no doubt. But as an investment....erm...
My problem is, why would I get into an arrangement where I own almost all the liabilities. Car(depreciating asset), fuel, insurance, service(recurrent expenses) maybe a loan(interest).
Even if I am getting a bigger chunk of the revenue, I am also bearing the weight of not only more costs but the costs with greatest variability.
Stay out of business because that is the case with 99% of business ventures. Truth forever on the scaffold
Wrong forever on the throne
(James Russell Rowell)
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Rank: Elder Joined: 3/18/2011 Posts: 12,069 Location: Kianjokoma
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KNM wrote:Uber is very convenient, of that there is no doubt. But as an investment....erm...
My problem is, why would I get into an arrangement where I own almost all the liabilities. Car(depreciating asset), fuel, insurance, service(recurrent expenses) maybe a loan(interest).
Even if I am getting a bigger chunk of the revenue, I am also bearing the weight of not only more costs but the costs with greatest variability.
Because the taxi app companies assure you of business and transparency
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Rank: Member Joined: 1/1/2010 Posts: 511 Location: kandara, Murang'a
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A car in Uber nets over 60k a month. Half decent if you ask me, and that's with a hired driver Foresight..
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Rank: Member Joined: 1/1/2010 Posts: 511 Location: kandara, Murang'a
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streetwise wrote:Just like a kiosk, its a do it yourself business No its not. There are people with fleets in uber Foresight..
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Rank: New-farer Joined: 3/12/2014 Posts: 96
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gatoho wrote:streetwise wrote:Just like a kiosk, its a do it yourself business No its not. There are people with fleets in uber true there are people i know with like 50+
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Rank: Member Joined: 7/23/2009 Posts: 526
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penkon wrote:gatoho wrote:streetwise wrote:Just like a kiosk, its a do it yourself business No its not. There are people with fleets in uber true there are people i know with like 50+ You only need good systems. The biz is growing. I have not one, two or three units, all do more than 60k a month. Accept no one's definition of your life; define your life.
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Rank: Member Joined: 8/15/2015 Posts: 817
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kangi wrote:penkon wrote:gatoho wrote:streetwise wrote:Just like a kiosk, its a do it yourself business No its not. There are people with fleets in uber true there are people i know with like 50+ You only need good systems. The biz is growing. I have not one, two or three units, all do more than 60k a month. whose that governor who put in 80+ uber cars on the streets? eish!
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Rank: Veteran Joined: 11/14/2006 Posts: 1,311
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Cornelius Vanderbilt wrote:kangi wrote:penkon wrote:gatoho wrote:streetwise wrote:Just like a kiosk, its a do it yourself business No its not. There are people with fleets in uber true there are people i know with like 50+ You only need good systems. The biz is growing. I have not one, two or three units, all do more than 60k a month. whose that governor who put in 80+ uber cars on the streets? eish!
Problem in Kenya is that we copy each other too much and we suffer from "grabbiosis".... Everyone now is buying vehicles to put under uber....or one of the other companies. Unless the entry is controlled we will have some oversupply soon.
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Rank: Elder Joined: 3/29/2011 Posts: 2,242
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Liv wrote:Cornelius Vanderbilt wrote:kangi wrote:penkon wrote:gatoho wrote:streetwise wrote:Just like a kiosk, its a do it yourself business No its not. There are people with fleets in uber true there are people i know with like 50+ You only need good systems. The biz is growing. I have not one, two or three units, all do more than 60k a month. whose that governor who put in 80+ uber cars on the streets? eish!
Problem in Kenya is that we copy each other too much and we suffer from "grabbiosis".... Everyone now is buying vehicles to put under uber....or one of the other companies. Unless the entry is controlled we will have some oversupply soon. But that is good for the consumer. A colleague who has a teenage Son told me of how whenever he want to go to town with his peers, they just hail an uber, and it comes, they share the cost. Taxis are now becoming easily available. I know of corporates who now want o go the uber way- Just hail and pay, without having a contracted taxi co. "Things that matter most must never be at the mercy of things that matter least." Goethe
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