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What's harder, making another Uber or making a self-driving car? Double-sided networks like Uber are hard to gain critical mass. Uber did it, which is extremel
by ssharp 11y ago
What's harder, making another Uber or making a self-driving car?
Double-sided networks like Uber are hard to gain critical mass. Uber did it, which is extremely impressive, however, whoever comes up with a self-driving car will eliminate one side of that network, making it substantially easy to compete.
I personally don't see how Uber's infrastructure minus the driver network is that important.
- nugget 11y agoThey don't eliminate one side of the network but they do turn it into mostly a Capex problem, which is easier to solve, especially for cash rich companies like Google and Apple.
- ssharp 11y agoAnd Google and Apple can send a software update that puts their ride-request app on phones across the world. Both also have billions of cash on hand and could easily fund capital expenses with debt. Given how Apple approaches everything, it's logical that they're going to create an end-to-end experience, meaning they make the tech, they make the cars, and they make the equivalent of Uber. I'm not sure what Google's move is once they have commercially-viable self-driving tech. Would they license it to another automaker or group of automakers? Would their tech plug into whatever request app they make? I think the strategy for Uber is to connect with a manufacturer like Tesla, who seem to be advancing competitively with Google and Apple on self-driving tech. Tesla has less access to cash and debt than Apple. Still, I see Uber's value being far less to Tesla than Tesla's value to Uber.