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by aresant
2509 days ago
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1 - “desperately search for profitable business” - UBERs core business is a breath away from profitability. And trending quickly in the right direction. Looking at their corporate overhead and new market bets it’s clear they could cut their way to profitability today. But they are chasing a larger prize. 2 - Logistics is mind bogglingly difficult and capital intensive. Uber’s built in driver base has idle time that is an outrageously deep moat in competing in this space. Uber has 3 million drivers, say each vehicle costs $10k avg that is $30b In free capital equipment that they are starting with. Their internal traffic / route data that they collect from all 3m drivers all the time is the richest in the world. FedEx - for example - has “only” 85,000 vehicles. |
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It isn’t a moat at all! Every driver has all the apps and picks jobs from any of them. If I use Lyft instead of Uber the chances are I'll get the same driver in the same car anyway. And he’ll follow his in-car GPS to find me and then to take me to my destination so there’s no value in the route data either.