Cannibalise? I don't think they will all destroy each others business models to a point where there is no one left. There will always be one left standing, it's business after all.
The fact is, it is a new business model for moving people which is working (if you haven't tried an Uber that is fine, just check the CAB fundamentals since Uber arrived and this tells the story).
The masses will always choose price and convenience over all else. CAB does not offer that in comparison (which they are working on fixing).
BUT, How will they fix it when they have an expensive plate licensing system and high fees for drivers to enable them to drive for CAB?
I know... They do away with the plate licensing system, cut fees to nil and improve the payment system... Simple... Doing this makes them competitive with ride sharing companies. Do this though and the company is near worthless. Bummer. I guess it's an old model unable to be fixed... hence a very poor investment.
Saying CAB will ' always ' be the main game, is like saying eCommerce will not last as bricks and mortar is the main stay as it has been so for ever and a day... so the eCommerce threat will be a non-issue. Rubbish.
Or saying 'Blockbuster' will be okay one day if hopefully their old customers suddenly have a desire to drop Netflix and digital downloads / pirating.
This 'main chick' in the industry is losing with no easy fix available. Wish you luck to you though.
Ryan
CAB Price at posting:
$2.30 Sentiment: Sell Disclosure: Held
