[kajecounterhack]

I don't think the Jaguars are particularly spacious or nice. They just got a good deal on the platform. If anything, given the commodity nature of vehicles I'd expect car quality to improve.

Cleanliness doesn't seem that related to how expensive the tech is either - if anything it would only go down if it ceased to affect willingness to pay. As it stands, clean cars are important to their customers. If usage increases, cleaning can ostensibly increase too, no?

[jessriedel]

> Cleanliness doesn't seem that related to how expensive the tech is either - if anything it would only go down if it ceased to affect willingness to pay.

If a service is necessarily expensive, it will more by wealthy people, who have a higher willingness to pay for cleanliness.

> As it stands, clean cars are important to their customers.

This varies depending on the customer.

> If usage increases, cleaning can ostensibly increase too, no?

Greater usage can lead to economies of scale that push down the cost of cleaning, but I think we're already at the scale (hundreds of cars) where most of the economies of scale have been reached. I expect it's close to linear from now on.

[kajecounterhack]

Higher willingness to pay does not matter unless the market is segmented. So if the tech gets cheaper, unless they explicitly make an expensive "oft-cleaned" tier and a less expensive "less-oft-cleaned" tier, what matters is average willingness to pay.

"Once the tech becomes cheap, expect the car quality and cleanliness to go down" -- here you were positing that the _average_ willingness to pay for cleanliness will go down enough to affect things, barring any market segmentation. And I disagree:

1. You're assuming that the reason _why_ Waymo's cars tend to be cleaner than your typical Uber / Lyft is to satisfy a wealthy clientele. This elides a big reason for the existing gap: Uber / Lyft drivers aren't professionally managed. You don't directly pay for your Uber driver's interior car cleaning when you buy a ride, but the salary of folks managing Waymo's fleets is factored directly into pricing. Even if Waymo's clientele were less wealthy, you have to clean your cars and pass the cost on to all users. Additionally, interior cameras are pretty motivating to not mess up cars!

2. You're assuming that the cars today don't get maximum utilization, and that with more utilization you'd see dirtier cars. This is a pretty bad assumption - the cars are being utilized about as heavily as you can hope. In SF for most of Waymo's existence demand has outstripped supply. And the cars are still very clean :)

So if the usage is the same, and peoples' expectations for cleanliness are the same, why would rate of cleaning change as time goes on for the service?

The only thing I can think is if no reasonable alternatives to Waymo arise - in that case, cleanliness could go down but it has less to do with the clientele / willingness to pay, and more to do with competition / monopoly.

As another note, I just don't see how cleaning-based market segmentation would make good operational sense. Is cleaning the car slightly less frequently really gonna help the bottom line? Is the price differential big enough at single-ride scale? Do even rental car companies do this for their fleets - the cheap ones still seem to clean their cars.