An average working person can takes 2 rides a day, 25 days a month. So they would need to spend 50*$20 = $1000 per month on taxi rides. That comes to around $12000 per annum. We can assume that only people earning > $100-150 k would be willing to incur such an expense. Looking at the US distribution of income, this is around 10% of population. In major cities, this number can be higher, say 20% of working population. So the qualified segment becomes 3.5 million * 0.20 = 700 k people
We have 700 k people spending $12000 per month. That makes it $8 billion per month from a city of 5 million people.
Hi In step 5,
An average working person can takes 2 rides a day, 25 days a month. So they would need to spend 50*$20 = $1000 per month on taxi rides. That comes to around $12000 per annum. We can assume that only people earning > $100-150 k would be willing to incur such an expense. Looking at the US distribution of income, this is around 10% of population. In major cities, this number can be higher, say 20% of working population. So the qualified segment becomes 3.5 million * 0.20 = 700 k people
We have 700 k people spending $12000 per month. That makes it $8 billion per month from a city of 5 million people.
So this should be $12000 per year right ?
Yes, year instead of months. Corrected now, thanks for pointing it out :)