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> They’re a software, logistics company. Their product isn't some software, and they're not making money by selling software or a software-based service [1], s
by adwn 4y ago
> They’re a software, logistics company.
Their product isn't some software, and they're not making money by selling software or a software-based service [1], so they're not a software company.
They're selling taxi rides, the fulfillment of which is outsourced to semi-independent contractors. Therefore, they're a taxi company.
[1] Yes, they have an app – who doesn't, today – but clients aren't paying for using the app, they're paying for the service arranged via the app.
- ianai 4y agoAs I understand it, they claim their worth comes in the algorithm getting someone to their user more efficiently. Still not seeing why all the leverage. For a cab company I suppose it’d be car and insurance/gas costs. This gets more fuzzy because I remember cab companies renting vehicles to drivers per day. I think the rent was the companies effective share of the rides.
- Thlom 4y agoUber sells rides at a loss. Or at least they did so.