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1) People said the same about FB wrt Myspace. 2) Even if Uber's CAC doesn't decrease, it could have a vastly-higher CLV to justify the crazy spending to captur
by beambot 10y ago
1) People said the same about FB wrt Myspace.
2) Even if Uber's CAC doesn't decrease, it could have a vastly-higher CLV to justify the crazy spending to capture market share now. It's a calculated strategic decision -- and it's impossible to say if it's "wrong"; only time will tell.
- ithinkinstereo 10y ago2) CLV depends on customer loyalty. In the case of the ride-sharing market, this ultimately comes down to the cost of service. Plus remember that Uber has to satisfy both sides of the coin here: drivers + riders. AND they have to be profitable. Tall order here.