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Isnt it pretty obvious what uber needs? They need some one to act like an adult. They need a real business man to either start charging actual fees for servic
by TheCondor 9y ago
Isnt it pretty obvious what uber needs? They need some one to act like an adult. They need a real business man to either start charging actual fees for service and somehow magically keep customers or start planning and figuring out a graceful way to lower valuation.
Suppose Immelt steps in, stops subsidizing rides, things stabilize and Uber's valuation cuts in half but they find a sustainable place to be. That seems like a job well done and the echo chamber can crap on Immelt for not innovating or destroying "value"
- wpietri 9y agoThat's the first thing that Uber needs. But it's not clear that absent subsidies they have a significant business. Their valuation might not fall by half. It could fall to something much, much smaller: https://ftalphaville.ft.com/2016/09/13/2173631/mythbusting-ubers-valuation/ https://ftalphaville.ft.com/2016/09/13/2173631/mythbusting-u... And that's only in the short to medium term. In the 20-30 year timeframe, their current business will be destroyed by automated cars. Car manufacturers have intrinsic advantages here, and they have deep existing relationships with the bulk of America.
- ghaff 9y agoSomeone will still need to operate the rental/dispatch fleets. And, as you say, 20 to 30 years. They can worry about that if they're still in business 20 years from now. Costs need to be looked at and pricing needs to be aligned with those costs. I tend to agree that this could drive ride volumes down significantly as people become less interested in Ubering everywhere if VCs stop subsidizing. But doesn't it have to get to that point? Neither autonomous cars or anything else are magic talismans just out of reach today that will change everything in an interesting time horizon.