> Uber and Lyft are operating a model that clearly works for customers. And yet they rightly face legal issues.
It isn't terribly surprising that they can offer cheaper service than incumbents by avoiding the costs of the incumbent. The technology problem they solved is very convenient, but I'm not sure that contributes significantly to the lower costs.
Hey this is anecdotal, be warned - many of my friends (all of those with kids) say they'd be happy to pay more for the peace of mind. To most of them the illegalities of Uber and Lyft are hazy, if not opaque. But they all know things aren't entirely kosher.
It isn't terribly surprising that they can offer cheaper service than incumbents by avoiding the costs of the incumbent. The technology problem they solved is very convenient, but I'm not sure that contributes significantly to the lower costs.