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Google invested $258,000,000 in Uber [1]. Why would they have plans to roll out a competing ride sharing service? [1] http://techcrunch.com/2013/08/22/google-v

by awwstn 12y ago

Google invested $258,000,000 in Uber [1]. Why would they have plans to roll out a competing ride sharing service? [1] http://techcrunch.com/2013/08/22/google-ventures-puts-258m-into-uber-its-largest-deal-ever/ http://techcrunch.com/2013/08/22/google-ventures-puts-258m-i...

toomuchtodo 12y ago
I'm curious. Why wouldn't google just buy Uber or replicate the technology? I've done IT forever. I know the trap, "How hard can it be?" Google has location data on everyone with Android devices. They have location data used for traffic information. It wouldn't be a leap to use that data to determine hotspots and route drivers.
- jedberg 12y ago
  Google has a strange disincentive to buy Uber -- since Google Ventures invested, Google really wants someone else's money to provide that exit, otherwise they're just moving money from one pocket to the other.
  - toomuchtodo 12y ago
    Unless the long-term value of Uber is much greater than their $258 million investment. Is it better to exit? Or be the leader in urban mobility (and the revenue that comes with that position)?
    - jedberg 12y ago
      Excellent point that I hadn't considered. In which case I guess it is just a numbers game like you said.
    - jbigelow76 12y ago
      >Or be the leader in urban mobility (and the revenue that comes with that position)? Small nit to pick, Google would be the leader in SUBurban mobility. The leader in urban mobility is the pedestrian (and lesser extent the bike rider). I live, work and for the most part "play" downtown. I already walk to work but Dallas isn't walkable and mass transit dense enough for me to totally ditch car ownership yet; but it is the eventual dream, to not have a car, rather than be driven around by a self driving one. (yes, I fully admit I probably sound like an urban hipster douche, but sometimes you just have to embrace it)
      - deleted 12y ago
        [deleted]
      - kelnos 12y ago
        That seems backward to me. I used to live in the suburbs; I likely wouldn't use Uber often or at all in that case, since you "have" to drive to get anywhere, and parking at your destination is usually free and plentiful. My Uber bill would likely be pretty high since things are more spread out. I live in a city now, and use Uber frequently (despite still owning a car). It's faster than public transportation, walking, or cycling, and avoids the hassle and cost of parking.
  - mbesto 12y ago
    Except that didn't stop them from acquiring Nest for $3.2b in cash.[1] If the market opportunity is big enough, then shifting money from one pocket to another makes the pants equally as big. [1] - http://techcrunch.com/2014/01/14/double-google-all-the-way/ http://techcrunch.com/2014/01/14/double-google-all-the-way/
- thefreeman 12y ago
  My best guess is that the questionable legality of Uber discourages them from pursuing it more directly.
lost_name 12y ago
Although I don't think they'd want to compete directly with Uber... surely they'll want to do something with their self driving car technology some time in the future.
- jbigelow76 12y ago
  So they eventually buy Uber for the brand and the installed user base and gradually replace live drivers with self driving cars conveniently parked around town waiting for instructions from the mother ship. So if it is a Trojan horse like the gp poster suggests it will be built with blocks of cash for the founders and investors instead of wood and filled with war crazed Greek soldiers.
  - epaladin 12y ago
    That would be an amazing plan, and I hope it happens that way. Given current timelines for the self-driving cars, it seems like that would be a major gamble considering the number of factors in play and the elements out of their control (which are mostly legal and social). Interesting possibility to consider.
    - lgas 12y ago
      What are the current timelines for self driving cars?
      - Gustomaximus 12y ago
        In 2012 Sergey said it would be about 5 years away. This gives another 3 years so doesn't sound unreasonable for some initial urban deployment.
    - cylinder 12y ago
      That's what they're doing with Google Shopping Express. Eventually self-driving cars will be doing the deliveries.
- etler 12y ago

by awwstn 12y ago

toomuchtodo 12y ago

I'm curious. Why wouldn't google just buy Uber or replicate the technology? I've done IT forever. I know the trap, "How hard can it be?" Google has location data on everyone with Android devices. They have location data used for traffic information. It wouldn't be a leap to use that data to determine hotspots and route drivers.

jedberg 12y ago
Google has a strange disincentive to buy Uber -- since Google Ventures invested, Google really wants someone else's money to provide that exit, otherwise they're just moving money from one pocket to the other.
- toomuchtodo 12y ago
  Unless the long-term value of Uber is much greater than their $258 million investment. Is it better to exit? Or be the leader in urban mobility (and the revenue that comes with that position)?
  - jedberg 12y ago
    Excellent point that I hadn't considered. In which case I guess it is just a numbers game like you said.
  - jbigelow76 12y ago
    >Or be the leader in urban mobility (and the revenue that comes with that position)? Small nit to pick, Google would be the leader in SUBurban mobility. The leader in urban mobility is the pedestrian (and lesser extent the bike rider). I live, work and for the most part "play" downtown. I already walk to work but Dallas isn't walkable and mass transit dense enough for me to totally ditch car ownership yet; but it is the eventual dream, to not have a car, rather than be driven around by a self driving one. (yes, I fully admit I probably sound like an urban hipster douche, but sometimes you just have to embrace it)
    - deleted 12y ago
      [deleted]
    - kelnos 12y ago
      That seems backward to me. I used to live in the suburbs; I likely wouldn't use Uber often or at all in that case, since you "have" to drive to get anywhere, and parking at your destination is usually free and plentiful. My Uber bill would likely be pretty high since things are more spread out. I live in a city now, and use Uber frequently (despite still owning a car). It's faster than public transportation, walking, or cycling, and avoids the hassle and cost of parking.
- mbesto 12y ago
  Except that didn't stop them from acquiring Nest for $3.2b in cash.[1] If the market opportunity is big enough, then shifting money from one pocket to another makes the pants equally as big. [1] - http://techcrunch.com/2014/01/14/double-google-all-the-way/ http://techcrunch.com/2014/01/14/double-google-all-the-way/
thefreeman 12y ago
My best guess is that the questionable legality of Uber discourages them from pursuing it more directly.

lost_name 12y ago

Although I don't think they'd want to compete directly with Uber... surely they'll want to do something with their self driving car technology some time in the future.

jbigelow76 12y ago
So they eventually buy Uber for the brand and the installed user base and gradually replace live drivers with self driving cars conveniently parked around town waiting for instructions from the mother ship. So if it is a Trojan horse like the gp poster suggests it will be built with blocks of cash for the founders and investors instead of wood and filled with war crazed Greek soldiers.
- epaladin 12y ago
  That would be an amazing plan, and I hope it happens that way. Given current timelines for the self-driving cars, it seems like that would be a major gamble considering the number of factors in play and the elements out of their control (which are mostly legal and social). Interesting possibility to consider.
  - lgas 12y ago
    What are the current timelines for self driving cars?
    - Gustomaximus 12y ago
      In 2012 Sergey said it would be about 5 years away. This gives another 3 years so doesn't sound unreasonable for some initial urban deployment.
  - cylinder 12y ago
    That's what they're doing with Google Shopping Express. Eventually self-driving cars will be doing the deliveries.
etler 12y ago