4 ms·

The problem with Uber is, that it's only really successful in North America. It's heavily restricted in almost entire Europe[1], and lags behind many regional p

by krn 8y ago

The problem with Uber is, that it's only really successful in North America. It's heavily restricted in almost entire Europe[1], and lags behind many regional providers, such as Taxify, where it's not. Uber's only real international win is huge stakes in Didi Chuxing, Grab, and Yandex Taxi. But it's not like the entire world is using Uber, or ever will. [1] https://www.washingtonpost.com/news/worldviews/wp/2017/11/10/with-new-court-loss-in-britain-europe-becomes-more-of-a-minefield-for-uber/ https://www.washingtonpost.com/news/worldviews/wp/2017/11/10... (see the map)

aquadrop 8y ago
Offtopic, but that's one of the worst ways to do map legends I've seen. It reads like this: - Pink: restricted - Red: banned - Dark blue: Iceland
JumpCrisscross 8y ago
> The problem with Uber is, that it's only really successful in North America Uber could easily justify a $120 billion valuation by dominating American urban car transport. The big question is whether they'll be able to (a) dominate while (b) staying profitable.
- krn 8y ago
  What competitive advantage does Uber have over other companies? At least in my country, ride hailing companies are treated like taxis, and people switch instantly to the one that offers a better deal in town.
  - JumpCrisscross 8y ago
    > What competitive advantage does Uber have over other companies? Local network effects. Kalanick's strategic mistake was assuming network effects in New York create network effects in Hanoi. They don't, apart from cash. But in New York, there are more drivers on Uber than other services. Which brings more riders. Which brings more drivers. Et cetera.
  - everythingswan 8y ago
    I tend to dislike them because of their past but I'll defend with a thought about their roadmap. With their current business model, I don't think they have it in the bag. They don't have much that other ride shares don't. But I think that if they had the infrastructure built out to support their current model for the whole country, they would be the only company capable of being the software side of autonomous vehicles. Or, at least, the best positioned company to win that contract. I think that transportation itself is big enough to warrant such a big valuation. So I think their competitive advantage will be built over time and, right now, it's not anything sustainable by replacing taxis. Of course, once someone wins the race, maybe we won't need anymore clones since the cost/transaction will reach a good equilibrium for everyone. Then they can build a different type of sustainable competitive advantage.
  - Terr_ 8y ago
    > What competitive advantage does Uber have over other companies? At least a few years ago: A willingness to break the law and then throw money at lobbyists and lawyers to change the policy.
    - consumer451 8y ago
      > then throw money at lobbyists and lawyers to change the policy. But when they changed the local taxi laws/policies, they opened the doors to all ride sharing competitors as well, didn't they? If so that wouldn't necessarily count as a competitive advantage, more of a cost of entry to the market.
deminature 8y ago
This is not even accurate: the service is incredibly popular in Middle East, Latin America and India [1] and is both popular and legally permitted in London as of June 2018 [2]. The article you've linked is almost a year old and out of date. [1] https://www.recode.net/2018/3/26/17164388/ubers-southeast-asia-india-middle-east-latin-america-ride-hail-taxi-service-international https://www.recode.net/2018/3/26/17164388/ubers-southeast-as... [2] https://www.bbc.com/news/business-44612837 https://www.bbc.com/news/business-44612837
- amasad 8y ago
  Middle East has Careem. Uber is not nearly as popular.
- krn 8y ago
  > This is not even accurate: the service is incredibly popular in Middle East, Latin America and India [1] That's not what your source claims. It says, that these are the only big markets in which Uber still has a chance to succeed after retreating from China, Russia, and South East Asia. > The article you've linked is almost a year old and out of date. I linked to the map of the continent, not to a case of a single city. But your own source states, how many problems Uber faces even in London: > Uber has now been awarded a licence but it has been put on probation for 15 months. > So Uber is now free to continue operating in a very important market - but on probation with Transport for London watching its every move.
  - deminature 8y ago
    If you read my source, you'll see that it does support my argument: >Indeed, India is a vast market that accounts for 10 percent of Uber’s trips with 10 million rides a week, so ceding ground there will be undoubtedly damaging to the company. >“India is a key component of our growth plan,” Khosrowshahi told the Economic Times during a recent trip to India. “If you look at the market, it’s one of our healthiest markets in terms of growth rates.” >In Latin America, the company has seen incredible success as the region quickly became its fastest growing.

by krn 8y ago

aquadrop 8y ago

Offtopic, but that's one of the worst ways to do map legends I've seen. It reads like this: - Pink: restricted - Red: banned - Dark blue: Iceland

JumpCrisscross 8y ago

> The problem with Uber is, that it's only really successful in North America Uber could easily justify a $120 billion valuation by dominating American urban car transport. The big question is whether they'll be able to (a) dominate while (b) staying profitable.

krn 8y ago
What competitive advantage does Uber have over other companies? At least in my country, ride hailing companies are treated like taxis, and people switch instantly to the one that offers a better deal in town.
- JumpCrisscross 8y ago
  > What competitive advantage does Uber have over other companies? Local network effects. Kalanick's strategic mistake was assuming network effects in New York create network effects in Hanoi. They don't, apart from cash. But in New York, there are more drivers on Uber than other services. Which brings more riders. Which brings more drivers. Et cetera.
- everythingswan 8y ago
  I tend to dislike them because of their past but I'll defend with a thought about their roadmap. With their current business model, I don't think they have it in the bag. They don't have much that other ride shares don't. But I think that if they had the infrastructure built out to support their current model for the whole country, they would be the only company capable of being the software side of autonomous vehicles. Or, at least, the best positioned company to win that contract. I think that transportation itself is big enough to warrant such a big valuation. So I think their competitive advantage will be built over time and, right now, it's not anything sustainable by replacing taxis. Of course, once someone wins the race, maybe we won't need anymore clones since the cost/transaction will reach a good equilibrium for everyone. Then they can build a different type of sustainable competitive advantage.
- Terr_ 8y ago
  > What competitive advantage does Uber have over other companies? At least a few years ago: A willingness to break the law and then throw money at lobbyists and lawyers to change the policy.
  - consumer451 8y ago
    > then throw money at lobbyists and lawyers to change the policy. But when they changed the local taxi laws/policies, they opened the doors to all ride sharing competitors as well, didn't they? If so that wouldn't necessarily count as a competitive advantage, more of a cost of entry to the market.

deminature 8y ago

This is not even accurate: the service is incredibly popular in Middle East, Latin America and India [1] and is both popular and legally permitted in London as of June 2018 [2]. The article you've linked is almost a year old and out of date. [1] https://www.recode.net/2018/3/26/17164388/ubers-southeast-asia-india-middle-east-latin-america-ride-hail-taxi-service-international https://www.recode.net/2018/3/26/17164388/ubers-southeast-as... [2] https://www.bbc.com/news/business-44612837 https://www.bbc.com/news/business-44612837

amasad 8y ago
Middle East has Careem. Uber is not nearly as popular.
krn 8y ago
> This is not even accurate: the service is incredibly popular in Middle East, Latin America and India [1] That's not what your source claims. It says, that these are the only big markets in which Uber still has a chance to succeed after retreating from China, Russia, and South East Asia. > The article you've linked is almost a year old and out of date. I linked to the map of the continent, not to a case of a single city. But your own source states, how many problems Uber faces even in London: > Uber has now been awarded a licence but it has been put on probation for 15 months. > So Uber is now free to continue operating in a very important market - but on probation with Transport for London watching its every move.
- deminature 8y ago
  If you read my source, you'll see that it does support my argument: >Indeed, India is a vast market that accounts for 10 percent of Uber’s trips with 10 million rides a week, so ceding ground there will be undoubtedly damaging to the company. >“India is a key component of our growth plan,” Khosrowshahi told the Economic Times during a recent trip to India. “If you look at the market, it’s one of our healthiest markets in terms of growth rates.” >In Latin America, the company has seen incredible success as the region quickly became its fastest growing.