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PR Newswire
15-03-2017, 12:40 PM
The biggest losers will be the young people who are uber/grab drivers. Not only do they risk being obsolete from driverless cabs, they also face career risk by not moving up the value chain. Who will employ a 30 something with no skill?
And when these ride-hailing companies finish burning through their cash to offer discounts to passengers, people will return to the other modes of transportation. Of course, uber/grab is betting on commuters becoming dependent on them, such that there will still be demand for their services when there is no more discount. But if this does not pan out, and the government's initiative to reduce car ownership is not as successful, this may lead to less income for uber/grab drivers.
And when these ride-hailing companies finish burning through their cash to offer discounts to passengers, people will return to the other modes of transportation. Of course, uber/grab is betting on commuters becoming dependent on them, such that there will still be demand for their services when there is no more discount. But if this does not pan out, and the government's initiative to reduce car ownership is not as successful, this may lead to less income for uber/grab drivers.