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I have a strong feeling that Uber will survive time, simply because of the differences in their cost-of-acquisition and user lifetime value; Uber attracted me t
by forkLding 9y ago
I have a strong feeling that Uber will survive time, simply because of the differences in their cost-of-acquisition and user lifetime value; Uber attracted me through their ~$40 cost of acquisition by paying both me and the referrer in credits which is small when you compare and see myself spending more than that amount in a year and definitely more as I move through life. I can also see them subtly increasing prices until they finally dominate transportation and ride-sharing.
Expending huge amounts of money to grow is actually normal, Microsoft had billion dollar losses trying to market their Microsoft Surface in an Apple-saturated market and are currently now profiting from their heavy losses in the past; you can't really see the past until you're in the future.