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Sure, but we need commodities and there are tons of profitable commodity businesses. If Uber is able to deliver ride cheaper than everyone else, they can make a
by MediumD 9y ago
Sure, but we need commodities and there are tons of profitable commodity businesses. If Uber is able to deliver ride cheaper than everyone else, they can make a ton of money, and the logistics and scheduling competencies can be applied to other verticals. That being said, I'm still pretty bearish on Uber's longterm success, and their current numbers do look pretty bad.
- maxxxxx 9y ago"If Uber is able to deliver ride cheaper than everyone else, they can make a ton of money," They are repeatedly demonstrating that they are not able to do this profitably.
- MediumD 9y agoI am not saying they will or won't be able to do it profitably, but saying they won't be profitable because their product is a commodity seems wrong. People need and are willing to paying for commodities, it's a matter of whether or not Uber can execute.
- maxxxxx 9y agoAgreed. It looks like Uber is not Walmart or Amazon who can thrive in low margin markets though. They are producing huge losses right now.
- bunderbunder 9y ago> If Uber is able to deliver ride cheaper than everyone else, they can make a ton of money. More specifically, if Uber is able to deliver rides cheaper than everyone else, at a cost to them that is even cheaper than that, they can make a ton of money. If it's the other way around, they lose a ton of money instead.