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Guys, if you're paying $2B/year to "build a brand," you should maybe think about exactly how valuable that brand will be.
by aetherson 10y ago
Guys, if you're paying $2B/year to "build a brand," you should maybe think about exactly how valuable that brand will be.
- exelius 10y agoSo I do this for a living... and I'd estimate the value of Uber's brand at $20-30 billion right now and growing. Brand perception among mainstream consumers is extremely positive and they're aggressively expanding globally. Think about how many times you've heard someone say "Hey, who wants to call the Uber?" That's brand value right there. They are essentially price inelastic given how many tiers of service they offer. Uber is only having a cash bonfire right now to keep the drivers happy so they don't make it a terrible experience for the customers. But rest assured as soon as they are allowed to, Uber will replace the drivers, lower the price and capture some percentage of what they used to have to pay drivers for themselves. That's when Uber goes from a brand investment to a cash cow.