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The general consensus seems to be, on HN atleast, that what they are doing in unsustainable - which economically it obviously is - but how many people would sho
by chrisherd 10y ago
The general consensus seems to be, on HN atleast, that what they are doing in unsustainable - which economically it obviously is - but how many people would short Uber?
As far as I see it, if venture continues to fund its expansion Ubers access to private capital from banks is almost infinite. Ride sharing might be a non-zero sum game, but I fully expect Uber to buy lyft eventually and then it becomes far easier to cherry pick any smaller upstarts when they reach a certain scale.
In fact, Ubers forray into new markets would be far more economically viable by doing so. Allowing smaller companies to establish in new cities or regions before purchasing them makes a lot of sense as the business matures.
Additionally, like the deal with Didi shows, there is a massive incentive to monopolise through partnership. I would imagine this is the route Uber would go should any of the large tech companies decide to establish itself as a viable competitor.