[UBER] Uber Acquires CarNextDoor

Where To From Here?

It’s hard to predict the future… but I’ll give it a go anyway: CarNextDoor will continue as it has, while working with Uber behind the scenes to invest in insurance, marketing, software dev, technology, etc. Eventually, CarNextDoor will be rebranded as UberCarShare, or something similiar.

Changes to pricing will be made, with particular attention given to the distance rates and the fuel fraud that CarNextDoor is struggling to address presently. Uber loves squeezing out every cent via their algorithms, so I suspect owners will be able to set a base price for their vehicle, with ‘Surge‘ prices set by Uber.

As Uber refines the experience and and gathers publicity, I expect an uptake amongst owners and borrowers to that of drivers and customers of Uber and UberEats. Ultimately, owner’s margins will probably shrink as the platform grows, as happens with most competitive markets.

I don’t believe Uber will expand CarNextDoor’s little fleet. Uber’s whole business model is to have others provide the infrastructure and discount labour. If Uber created their own fleet then they would have to hire staff just to maintain the vehicles. Why do that when owners already provide that labour for free?

In the same way taxi companies were forced to list themselves on Uber, I’m sure hire car companies such as Europcar will join the platform. These larger fleets will likely be able to negotiate a higher commission than owners with just a car or two on the platform. CarNextDoor already offers varying rates of commissions, and it will allow Uber to convert large fleets such as Hertz from competitors into “partners”, as CarNextDoor previously referred to owners as.

I do believe owners of small fleets will still be able to make a go of it, though it will become more competitive.