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Billions of VC investment money. Actually, I don't agree with the GP. In my view Uber represents one of the biggest transfers of wealth from VCs to the common m
by corford 9y ago
Billions of VC investment money. Actually, I don't agree with the GP. In my view Uber represents one of the biggest transfers of wealth from VCs to the common man in the last three decades. When the funding eventually dries up and Uber are forced to raise their prices, the common man will just move on and leave Uber to go bankrupt. It's beautiful really (at least the LP money coming from pension funds etc. is finding it's way back to the originators in the form of discounted travel rather than going up in smoke).
- hectorlorenzo 9y agoThe common man being the users or the drivers?
- corford 9y agoAFAIK Uber are subsidizing users and drivers, so both? Although I think the users are getting the better end of the deal.
- FabHK 9y agoI'm not sure the drivers really have a good understanding of their cost base. I doubt very much that Uber covers the average cost per mile (though hopefully the marginal cost). Would be interesting to see a proper analysis.
- chillydawg 9y agoIt's beautiful until they become a monopoly and jack their prices up. I reckon they've got no chance, though. There's no network effect to speak of and competitors can start small and grow, without needing billions. In 15 years from now, the supply of self driving cars will be the limitation and they'll be available in high quality and low price from all the major manufacturers. The actual technology in uber's app is basically nothing, any company could replicate it without too much hassle.