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"""The Uber model has no barrier to entry""" I don't know how many potential competitors are willing to blatantly ignore existing laws (I guess this is the myt
by kriro 10y ago
"""The Uber model has no barrier to entry"""
I don't know how many potential competitors are willing to blatantly ignore existing laws (I guess this is the mythical ethics barrier). Ability to raise money given there's Uber (and Lyft etc.) is also a strong barrier since the model only works with massive VC money to keep cost artificially low. Brand recognition is another one.
At the end of the day Uber seems to prefer the classical (as in 5 forces) cost leadership strategy, currently powered by VC funding. Which means long term the play has to be autonomous vehicles. Since the chain of operations requires vehicles in some way I agree with the many posters in this thread who have said their real competition will be the Teslas of the world. Which would worry me a great deal as an investor. I think they should push to IPO quickly while joe doe still thinks yeah Uber sure I use them every now and then take my moneyz (if that's ethical...I won't judge).