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It is. It's a war of cash against other companies. The same way the OPEC has been dumping oil on the market to make its price crash to break competitors. So wit

by nazka 10y ago

It is. It's a war of cash against other companies. The same way the OPEC has been dumping oil on the market to make its price crash to break competitors. So with a price at the barrel two times lower that their break even, oil companies in particular the US shale companies [1], will suffer or even declare bankruptcy and then the OPEC would have got their market share back and then would have raise its price like in 2012-2014. (They failed [2]). But for Uber apart of China [3], Uber is winning and all VCs will make it that way anyway. Uber is the clear winner and they will continue to pool cash to the winner until it breaks all competitors. And then it will rise its prices and start piles of cash. [1] https://www.bloomberg.com/news/articles/2016-05-04/u-s-output-tumbles-as-shale-drillers-capitulate-to-opec-chart https://www.bloomberg.com/news/articles/2016-05-04/u-s-outpu... [2] https://www.bloomberg.com/news/articles/2016-12-10/non-opec-joins-opec-in-first-global-oil-output-cuts-in-15-years https://www.bloomberg.com/news/articles/2016-12-10/non-opec-... [3] http://qz.com/746930/the-battle-between-uber-and-its-fiercest-competitor-is-over-and-uber-lost/ http://qz.com/746930/the-battle-between-uber-and-its-fierces...

WhitneyLand 10y ago
Whoa there that's very different business. In oil there are huge barriers to entry and big costs to ramp down and ramp back up production. If Uber ever tries to raise prices too high competitors wil swarm into the market.
- nazka 10y ago
  Yes but on a simple point of view: the strategy, dynamic, and end results are the same here. And it's the same for oil companies too. With the price starting to go up with the cut from OPEC and other countries, more oil companies start to be created, the old ones have finally more air to breath and start to drill again. Also with Uber investing on autonomous cars and how they are the only one with real tests with several cars on the road, this is going to be a huge barrier of entry. Even more when we see how the best tech giants like Apple and Google are struggling to develop one.

by nazka 10y ago

WhitneyLand 10y ago

Whoa there that's very different business. In oil there are huge barriers to entry and big costs to ramp down and ramp back up production. If Uber ever tries to raise prices too high competitors wil swarm into the market.

nazka 10y ago
Yes but on a simple point of view: the strategy, dynamic, and end results are the same here. And it's the same for oil companies too. With the price starting to go up with the cut from OPEC and other countries, more oil companies start to be created, the old ones have finally more air to breath and start to drill again. Also with Uber investing on autonomous cars and how they are the only one with real tests with several cars on the road, this is going to be a huge barrier of entry. Even more when we see how the best tech giants like Apple and Google are struggling to develop one.