On page 95, Gordon mentions “Economies of Density”. This refers to the idea that new technologies
and services often come to urban areas before rural areas. This occurs because
it is much easier and often cheaper to supply these new modern conveniences in
more densely populated areas. In particular, networking of running water,
sewage, and telephone lines occurred much more quickly in cities than in the
country.
Despite the fact that rural areas have caught up in many regards, there
are still some amenities that are not available outside of the city. However,
one company, Liberty Mobility Now is attempting to bring a very popular service
to rural America; ride hailing. This service, which Uber and Lyft provide to urbanites around the country, is proving to be a very valuable service
to rural residents as well. Since many small towns do not have any buses or other
forms of public transportation, the availability of ride hailing is meeting an
important need for the aging population who can no longer drive and those who
cannot afford a car. “Rides cost $1.25 to book and $1 per mile. The fees
are a small fraction of what the cabby charges.”
Do you think that this type of
service will be profitable in rural areas, or does the Uber model need to be
further adapted to fit the needs of the rural population?
I definitely think Uber and Lyft will be beneficial to rural areas as well as urban cities. Yet, I doubt that in rural areas this type of service will be profitable because still a lot of people in our parents' generation and grandparents' generation are very skeptical about such service.
ReplyDeleteI think they will be popular in rural areas. Just not as much so. Just like you said, there's a reason new and upcoming products/business models generally start in urban areas. However, I think ride hailing will be sustainable in these areas. Profit margins may just be a bit more slim.
ReplyDeleteI definitely think there is a need for such a service in rural areas. Profits will not be nearly as high, but the service will definitely be meeting a need.
ReplyDeleteI agree with what everyone else has said. There is a need for these services in more remote locations, but they won't be as profitable as in urban areas.
ReplyDeleteI gotta agree with everyone else! Especially coming from a small rural area town, it's definitely needed and would be used.
ReplyDelete