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I'm skeptical: financial viability of Tesla-exclusive rideshare service

Discussion in 'Model S' started by calisnow, Oct 25, 2016.

  1. calisnow

    calisnow Active Member

    Oct 11, 2014
    Los Angeles
    Usually an optimist and a believer in Tesla's ability to execute - but I've finally found something about which to be skeptical - the business viaability of a Tesla-exclusive rideshare network ie the "Tesla Network."

    Personally I think this is a harder problem than full autonomy because it's a critical mass problem. As a ride share user, I do not care whether a human is driving or not - I just want to be picked up and picked up NOW.

    Uber delivers that experience in most places I go in California - but it does so by leveraging lots of humans driving lots of inexpensive cars from many manufacturers. It's hard for me to imagine Tesla getting a critical mass of rideshare participants any time in the next few years so that the service becomes practical for users - and thus popular enough to at least break even.

    On the other hand I could be wrong. If the cars exist anyway sitting around in customer garages, all Tesla has to do is build a software platform and take a slice of the revenue.

    But again on the other hand if rideshare profits were that easy Uber and Lyft would both be relaxing. Uber claims to be profitable in the U.S. but Lyft is still losing money - and both are far larger than a Tesla network would be for years.
  2. CHG-ON

    CHG-ON Still in love after all these miles

    Jun 24, 2014
    Santa Cruz Mountains, USA
    I agree with @calisnow. I could see an Uber Black in a high end populated area. Maybe. But I would never do it. I didn't drop 130 large to haul around strangers in my girl. Also, it would never pay off financially to the level that I would want. I certainly didn't become able to buy her by playing chauffer.

    Uber's success as a company is volume and paying it's drivers sh-t. And treating them that way too.

    S4WRXTTCS Active Member

    May 3, 2015
    Snohomish, WA
    #3 S4WRXTTCS, Oct 25, 2016
    Last edited: Oct 25, 2016
    I'm skeptical of the long term financial viability of it as well, but I think it's important topic to drum up financial backing. It makes more sense on a power point presentation for a 10 year plan than anything anywhere close to right now. Money people love the idea of monetizing a service.

    In 10 years the software/regulations/hardware will be more defined and potentially people could have used Tesla's as second cars that could work. I could see it being viable if it was a second car that I didn't care so much about. There will also be a fair amount of Tesla inventory from people who trade in their cars to upgrade to something even more fancy. So it gives Tesla a way to make money off of a car that would normally sit there.

    As a ridesharing service it could potentially do well for those of us that dislike interacting with humans. Uber will likely have an option as well.

    It probably makes more sense for Tesla than it does for a car consumer. Tesla has to continue to make money when people are no longer buying cars. So you profit off the ridesharing, and you profit off the energy.

    It's like a lot of things when it comes to Tesla. It makes absolutely no sense now, but way down the road it makes total sense.
  4. Roger t

    Roger t Member

    Feb 6, 2016
    United States
    I use both Uber and Lyft apps. A lot of drivers drive for both too. By the time Tesla network is allowed by regulators, there will be more than one million self driving Tesla on the road. Even with a fraction of owners sharing, it would be the same number as Uber today.
  5. xborg

    xborg Member

    Oct 21, 2015
    It'd make more sense for Model 3. Cheaper and highly available.

    I wonder If they'd make a premium members only option. Like: "If you own a Tesla, and activate the ride-sharing network on your car, wherever you go, you can use any Tesla, anywhere in the world, free forever, as long as you keep your ride sharing activated"
    Or maybe a points based system,

    But anyways, self driving ridesharing is years away.
    • Helpful x 1
  6. PtG62901

    PtG62901 Member

    Jul 29, 2016
    Carbondale, IL
    Going to San Francisco, not renting a car. Will Uber or Taxi. I think Tesla's idea for ride sharing will work, at least in the city. Uber, without the human driver? That makes sense.

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