Huge Vote Of Confidence: Uber Raises $11 million From Benchmark Capital

http://techcrunch.com/2011/02/14/huge-vote-of-confidence-uber-raises-11-million-from-benchmark-capital/

by jkopelman • 15 years ago

26 18 15 years ago

pitdesi2• 15 years ago

I don't get it... Uber makes a lot of sense in SF, where it is nearly impossible to get a cab, but not so much in other places where there are enough cabs going around (New York, Chicago). It might make sense for smaller cities, but I just don't see it working at a 50% price premium to regular taxis.

And then there's the problem with the taxi unions, who will fight tooth and nail to disallow this (they will say that using an iphone app is the same as flagging one down)

Vivtek2• 15 years ago

I would totally use it in NYC - as an out-of-towner lacking confidence or whatever. I really like the idea of their homing in on my phone.

Not to mention the sheer delight of it! I push a button and a black car comes to me and takes me where I want to go!

Wow. That is just fantastic.

inmygarage• 15 years ago

I was initially skeptical of NYC too until someone at Uber pointed out "New Yorkers don't realize how often and how far they walk to get cabs". It's true - people forget that they'll walk a few blocks to get a cab. Uber literally comes right to your door, and people are lazy. The success of services like delivery.com and Seamless Web show that if your service involves not talking to anyone and not having to move, your chances of success are high, even in a market as crowded as New York City.

fleaflicker• 15 years ago

In NYC, getting a taxi during rain, rush our, new year's eve, or outside Manhattan is still very difficult. I'd use it.

cletus• 15 years ago

When there is a shortage of taxis, what makes you think this would get you one?

rst• 15 years ago

They could still win on user experience. Compared to your basic Yellow Cab, it's easier to call one, there's less hassle over payments, and the cars are nicer. And if you're at an odd location, "talk to the driver" directly works a lot better than trying to go through dispatch. None of these is hugely innovative --- but Zappo's isn't doing anything hugely innovative either, and competing on service has still served them pretty well.

(BTW, Uber had problems with taxi regulators even in San Francisco. Not to say that it wouldn't be a problem elsewhere, but they do have experience with it.)

pitdesi2• 15 years ago

Agreed, I just wonder what happens when Yellow Cab gets hip and releases a similar app (at a 33% discount to Uber rates)?

gergles• 15 years ago

I don't really think it makes sense in SF, either. Taxi Magic, run app, push button, a taxi arrives. You pay half the price and don't have to worry about the driver flaking out on you, because dispatch will send another one automatically.

I've never waited more than 5 minutes for a taxi in the central part of the city or more than 15 way the hell out in the middle of nowhere, and I can't imagine Uber can beat these times. They were advertising heavily in other apps, so I gave their website a try then a hearty laugh when I saw the prices, which are ridiculous ($1.30 a minute for waiting time? Are you people high?)

pjhyett• 15 years ago

Consider yourself lucky. I've had Taxi Magic and Cabulous leave me stranded a number of times. My favorite was the night Taxi Magic dispatched five different drivers over the course of 45 minutes and I never got picked up.

Forget calling the cab companies directly, I've waited over an hour multiple times for a pick up in Potrero. Halloween night I couldn't even get the Yellow/Luxor/Veteran numbers to connect they were so overloaded. UberCab showed up in 15 minutes and took us all home that night.

defen• 15 years ago

Ever try to get catch a cab in Brooklyn? Half the time they won't even let me in the car if I don't say I'm going to Manhattan.

Bud• 15 years ago

That's illegal. Report them.

Vivtek2• 15 years ago

Aw, sweet - I'd never heard of this service, but the idea is fricking brilliant.

slevcom• 15 years ago

I still have that recurring dream that I've entirely forgotten about some college class, panicking, certain to fail and not graduate. Then I wake up to realize, "I'm not in school. Awesome!"

In the same vein, rich people are collectively waking up from this recession to realize, "Ha Ha! I'm still so loaded even my kids will never figure out how to spend it all. Awesome!"

Those people have to put their money somewhere. Wall Street is a decidedly less interesting choice these days.

henrikschroder3• 15 years ago

Meanwhile, the local taxi company I use the most in Stockholm has their own iPhone app which is basically a button for "I want a taxi at my current location now".

I don't understand, how can you make money for this as an external service? Aren't there local taxi companies in the SF or NYC that could do the same in an instant?

pchristensen2• 15 years ago

But who wants an app from every company? I'd rather just have the fastest taxi, regardless of who is driving it.

henrikschroder3• 15 years ago

But Uber doesn't seem to provide that? You can't get any taxi with them, you get a car from their fleet. So they operate exactly like my preferred taxi company?

Or have I misunderstood their service?

Huge Vote Of Confidence: Uber Raises $11 million From Benchmark Capital

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