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Anybody can make a sweet, carbonated beverage, but when Coca-Cola is faced with an ambitious and successful upstart, Coke can run at a loss to drive them out of
by Fricken 8y ago
Anybody can make a sweet, carbonated beverage, but when Coca-Cola is faced with an ambitious and successful upstart, Coke can run at a loss to drive them out of business, or Coke can acquire them, or Coke can copy them and beat them at their own game. Uber can do all the same things to smaller competitors in it's domain.
Uber's big competitors, on the global front, aren't really competitors. Uber, Grab and Didi all own each other, and Masayoshi Son has massive stakes in all 3, it's an oligarchy. The global rideshare companies aim to bring accountability and logistics supremacy to ad hoc and inefficient transportation networks all over the developing world.
I expect profit margins will forever be slim, but if it's a safe bet that rideshare is here to stay, then I believe over the long run Uber is a safe bet. I won't be investing in Uber myself because I have morals.
- CPLX 8y agoHave you ever been to a supermarket? The market for carbonated beverages is massive with lots of competitors and tons of new entrants, as well as competitive pricing and low margins. Much like, I am arguing, the market for taxi hailing will continue to be.
- Fricken 8y agoThe soda aisle in my grocery store has about 30 feet of shelf space for Coke and Pepsi, 10 feet for it's own no-name brand, and another 10 feet for the craft hipster pop.