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"Uber has a big competitive moat, which is willingness to burn money. " that's a very bad long term strategy :-)
by maxxxxx 8y ago
"Uber has a big competitive moat, which is willingness to burn money. "
that's a very bad long term strategy :-)
- est31 8y agoMost of the time, there won't be anyone trying so most of the time they will make money instead of burning it. As long as they are burning less on average than they are doing in profits they turn a profit in total. The business model already exists e.g. in the form of American cable companies. They offer crappy services for super expensive prices, but the moment a competitor gets into town and invests heavily, they invest as well and outbid them. This way they ensure that no competitor can make profits and grow beside them in that specific town. So they are safe. Add in government mandated monopolies and "you get counties abc, I get counties def" type deals between cable companies and regulators looking the other way. Same will likely happen for Uber vs Lyft.