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What competitive advantage does Uber have over other companies? At least in my country, ride hailing companies are treated like taxis, and people switch instant

by 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.

by krn 8y ago

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.