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The problem with Uber is their valuation. Nobody disputes there's a business here-- it's whether it's as big as it needs to be to make the math work. They cou
by warcher 10y ago
The problem with Uber is their valuation. Nobody disputes there's a business here-- it's whether it's as big as it needs to be to make the math work. They could conceivably create a monopoly on ride-sharing, but if they do that and raise prices (probably to roughly taxi parity, all told), then demand basically stays at where it was for taxis, we all live slightly more convenient lives, and all Uber's investor's lose their asses because this was not the moonshot they were promised.
For Uber to justify their valuation, they're going to need to invent the self-driving car, and frankly, they don't have time. There will not be a clear winner in the self-driving car market, which does not exist at this point in time, anywhere near the timeframe they're going to have to return their investment or go kick rocks.
- coralreef 10y agoHow does Uber achieve monopolization? What can they do that no one else can?